ASIA MIXED ON YIELDS HIT LOWEST LEVELS SINCE 2017

ECONOMY

On Tuesday , USA Treasury yields fall to lowest levels since 2017 keep Asian shares were shaky, further below short-term interest rates and adding to fears of a U.S. recession. MSCI’s broadest index of Asia-Pacific shares outside Japan was flat in early trade after two days of losses.
On Monday , Wall Street shares were little changed with the S&P 500 ending with a small loss of 0.08%. Investors have been spooked by sharp falls in U.S. bond yields and an inversion of the U.S. Treasury yield curve, which is widely seen as an indicator of an economic recession.
The Treasury Department will sell $113 billion in coupon-bearing supply this week, including $40 billion in two-year notes on Tuesday, $41 billion in five-year notes on Wednesday and $32 billion in seven-year notes on Thursday.
Fed funds rate futures are now fully factoring in a rate cut later this year, with about an 80 percent chance of a move priced in by September.
May said on Monday there was not yet enough support to put her Brexit deal to a third vote in parliament.

On Tuesday, Greenback rebounded modestly as Treasury yields pulled back from 15-month lows as a modicum of calm returned to financial markets gripped by fears of a sharper downturn in the global economy.
The euro stood at $1.1317, having gained a tad on Monday after Germany’s IFO Institute said its business climate index rose to 99.6, beating a consensus forecast of 98.5 and ending six consecutive months of decline.
The dollar was little changed at 110.08 yen, after having hit a 1 1/2-month low of 109.70 on Monday.
The British pound stood at $1.3203, erasing small gains made after lawmakers voted to wrest control of the Brexit process from Prime Minister Theresa May’s government for a day.
On Monday 10-year U.S. Treasury yield dropped to 2.405%, having shed 5 basis points. It has fallen more than 20 basis points since the Fed last week ditched projections for raising rates this year and announced the end of its balance sheet reduction, citing signs of an economic slowdown.

Oil prices hovered below their recent four-month peaks, as the prospect of tighter U.S. crude supply was offset by concerns about a slowdown in global economic growth.
U.S. crude futures traded at $59.23 per barrel, up 0.5% on day, a tad below Thursday’s high of $60.39, its highest since mid-November. Brent futures were up 0.3% percent at $66.99 a barrel.
Malaysian palm oil futures fell to their lowest in three days on Monday, tracking weaker related edible oils.
On Monday, U.S. wheat futures gained, lifted by short-covering and technical buying, as well as concerns about North American production as weather in the Midwest threatened to delay planting.