(Bloomberg) — US bonds rebounded before a record $42 billion sale of 10-year Treasuries after a solid start to this week’s ramped-up issuance sizes. Stocks in Hong Kong were set to rally a second day on bets China will be more forceful to prop up markets.
Following a selloff that drove two-year yields to their highest since before the Fed’s December “pivot”, a $54 billion sale of three-year US notes drew solid demand, bolstered sentiment and made traders shrug off a slew of cautious remarks from Federal Reserve speakers. The dollar weakened after reaching its highest since November on Monday.
In stock markets, the S&P 500 edged up, Australia’s benchmark index opened higher and contracts pointed to a decline in Tokyo. Futures for Hong Kong equities rose while the Nasdaq Golden Dragon China Index — a gauge of US-listed Chinese shares — advanced the most since July. Optimism is growing for more forceful Chinese…
