Asian bourses are pressured at the open on spill over selling from Wall Street, where the S&P 500 suffered its worst day since May, with the Tech sector globally pressure exacerbated as US Treasury yields climbed. Worth noting that the whole Fixed Income space is now highly sensitive and correlated to US Treasury yields as inflation worries are back on the radar. The Fed policymakers signalled that it could start tapering its bond-buying program this year and Fed Chair Powell said the program could end by mid-2022.
On the radar for the session ahead, market participants will keep watching the wires, looking for information regarding China Evergrande’s USD 45.2mln of interest payments that are due today. The quarter/month-end trading also affects the price action as players are working to get the best settlement price. On the data front, it is a quiet session term of economic releases in Asia. Later in the day, a raft of Central Bank policymakers will appear on a policy panel discussion at ECB Forum on Central Banking. Traders will be looking for updates on the Monetary Policy narrative as inflation worries are gaining attention once again.
