-- Asian shares look set to fall after hawkish signaling from the Federal Reserve intensified a rout in Treasuries and caused the S&P 500 to whipsaw in a volatile session.Severe Crash Is Coming for US Office Properties, Survey SaysAustralia’s benchmark fell 1.6% while Japanese futures point to sizable declines at the opening, with hawkish Fed messaging overtaking earlier optimism over the deal to avoid a US government shutdown.
Fed Vice Chair for Supervision Michael Barr said the biggest question before central bankers was how long to leave rates elevated, while known FOMC hawk Michelle Bowman reiterated her call for multiple hikes. On Friday, New York Fed boss John Williams had suggested rates should stay high for some time.The Reserve Bank of Australia is forecast to leave its policy rate unchanged for a fourth meeting on Tuesday, even as Australian home prices stayed strong in September.
The selloff in global bonds gathered momentum as the US shutdown reprieve prompted traders to raise bets on a November rate hike from the Fed. They now see a roughly one-in-three chance of a November move, up from the 25% likelihood priced on Friday. Oil retreated, with West Texas Intermediate dropping below $90 a barrel. A Citigroup Inc. analyst said waning demand from China is poised to to cap the gains from OPEC+ supply cuts.BOE Deputy Governor Ben Broadbent, Riksbank First Deputy Governor Anna Breman participate at panel discussion, ThursdayThe Japanese yen was unchanged at 149.86 per dollarAustralia’s 10-year yield advanced 10 basis points to 4.