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 reached fresh peaks and stayed near them in Asian trading. Micron forecast quarterly revenue above estimates and said customer commitments under long-term supply agreements rose to $32 billion.
1. Yields stay elevated
Asian markets began the final quarter on a muted note as bond markets remained in focus and yields hovered near multi-year highs. Slower U.S. inflation in August, alongside a downward revision to July’s reading, reduced some bets on a Federal Reserve rate hike this month but did little to help Treasury yields, which reached fresh peaks overnight.
2. Company and central bank news
Micron’s quarterly revenue forecast topped estimates, and the company said customer commitments under long-term supply agreements had increased to $32 billion. A Bank of Japan Tankan survey showed Japanese business confidence at an eight-year high in July-September, while a summary of the BOJ’s September meeting said some policymakers saw a need to accelerate tightening or move rates closer to the desired level sooner.
