US Treasury yields and Asian equity markets are on the rise following economic data that showed that the slowdown in the global manufacturing sector is bottoming out. The upbeat Asian economic data should come as no surprise for readers of our Comments. We have pointed in the past several months that South Korean exports, the earliest of the early cyclical indicators, we’re bottoming out. Ditto for Chinese trade data. At 1.81 the 10y US Treasury yield is up 4bps from Friday’s low. Still, the 10y is trading within a narrow trading range of 1.70-1.90 ahead of Friday’s nonfarm payrolls. With rising yields come higher USD OIS rates, though the low point of the forward curve still has one 25bps Fed cut next year fully priced in.


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