Bond-Bashing Abates: Morning Bid Update

The focus in Asian markets this week is on whether the U.S. Treasuries selloff will abate. While economic indicators and policy decisions in the region are limited, third-quarter GDP data from South Korea and consumer price inflation reports from Australia, Singapore, and Tokyo will be released. Flash PMI data from Japan and Australia will also be published. However, the broader market sentiment will likely be influenced by the U.S. bond market, which experienced a significant fall last week. Financial conditions have tightened globally, with China facing the tightest conditions since 2006. Chinese central bank governor Pan Gongsheng has pledged to make policy more "precise and forceful" to reduce financing costs. The yen and yuan are under selling pressure, and Bank of Japan intervention is being watched. Japanese and Australian PMI data for October will be released.