SYDNEY : Asian stocks were mostly higher on Tuesday as investors cheered the prospect that the world's largest economy will avert a major debt default, improving sentiment across most asset classes.
"There's still a huge disconnect between bond markets and equities. The bond market is implying there is an extreme 70 per cent probability on a U.S. recession in the next year. These signals stand in stark contrast to the resilient equity market." Benchmark 10-year yields dropped 6 basis points at the open of trade in Tokyo to 3.7596 per cent. Thirty-year yields fell 5.5 bps to 3.9207 per cent.
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