Shares, bonds rally as markets await signals for Fed rates

Business Recorder reported that Asian equities and bonds posted a relief rally on Thursday, while the yen kept its gains. Investors were watching incoming American figures and remarks from policymakers for hints on whether the Federal Reserve will tighten rates this month. Japanese government bond yields retreated from historic peaks ahead of a super-long debt auction in Tokyo, following overnight gains in Treasuries.

Markets are now focused on Friday's US payrolls report, which follows weak private labour figures for August. Fed Governor Christopher Waller is set to speak after New York Fed President John Williams cooled expectations of a rate hike this month. Pricing data from CME Group's FedWatch tool suggests traders now put about two-in-three odds on a 25-basis-point increase, compared with 37% a week earlier.

In bond markets, the US 10-year yield dipped 0.99 basis point to 4.784%, while the 30-year JGB yield fell 10 bps to 4.065%. Oil prices eased, with US crude down 0.3% at $90.74 a barrel and Brent at $95.21, while spot gold rose 0.32% to $4,400.47 an ounce. The dollar index slipped to 99.54 as the yen firmed to 158.59 per dollar.