Stocks fell across Asia as oil prices extended gains ahead of a key US inflation report that may give a better guide on Federal Reserve’s policy outlook.
Treasury two-year yields, which are more sensitive to Fed policy than longer maturities, stayed firm above 5%, while their 10-year peers held at 4.28%. A US 10-year auction Tuesday drew the highest yield since 2007 as investors demand extra compensation for elevated inflation and rising debt issuance.
German bund futures slipped in Asian trading on a report that the European Central Bank expects inflation in the euro zone to remain above 3% next year. The euro was little changed.
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