Inflation relief gives bonds little reprieve
TLT•Slower-than-expected U.S. inflation in August reduced some bets on a Federal Reserve rate hike this month, but Treasury yields hit fresh peaks and held near those levels in Asia trading.
1. Yields stay elevated
Asian markets began the final quarter on a muted note as investors focused on bond markets, with yields near multi-year highs. The slower August U.S. inflation rise and a downward revision to July’s reading did little to help Treasury yields, which reached fresh peaks overnight.
2. Other market developments
Stalling U.S.-Iran peace talks have done little to ease global inflation pressures, while prices climbed faster than expected in some major euro zone economies last month. Japan’s Tankan survey showed business confidence at an eight-year high for July-September, and a summary of the Bank of Japan’s September meeting said some policymakers saw a need to accelerate tightening or move rates closer to the desired level sooner.
