- Following comments on rates from Federal Reserve officials that fueled speculation the US central bank may remain on hold until the end of the year, Asian stocks advanced while Treasuries rose.
- As benchmark indexes edged higher, an Asian equity gauge rose by the most in six weeks. With gains of more than 2%, Japanese stocks outperformed the region. US stock futures also rose after the S&P 500 gained 0.6% on Monday. Investors are still assessing the potential impact of the Israel-Hamas conflict.
- Treasury yields on the benchmark 10-year note fell more than 16 basis points to 4.63% on Tuesday. The yield on the policy-sensitive two-year note fell by nearly 16 basis points as investors increased their bets that the Fed will keep interest rates unchanged until the end of 2023. Bond yields in Australia and New Zealand have also fallen.
- Following the recent rise in Treasury yields, Fed Vice Chair Philip Jefferson said officials could "proceed cautiously," and Fed Bank of Dallas President Lorie Logan said the surge in long-term rates may mean less need for further tightening.
