Market participants remained relatively unperturbed by hawkish commentary from the Federal Reserve, with Treasury 10-year yields exhibiting minimal change at 4.32% on Thursday. Cash Treasury trading in Asia was halted on Friday due to the observance of a Japanese holiday. The Federal Reserve’s increasing confidence in ongoing and sustainable disinflation may eventually prompt a shift in the policy rate, a development that traders are closely monitoring.
In the commodities market, oil prices experienced a slight decline as investors weighed indications of a tightening market against persistent concerns surrounding demand. Meanwhile, gold prices fluctuated in response to US economic data releases and Federal Reserve minutes, which suggested that policymakers are comfortable maintaining higher interest rates for an extended period if deemed necessary.