Asia Players Digest Fedspeak, U.S. Fiscal Talk

Fedspeak and U.S. fiscal matters provided the central talking points in NY hours. Central bankers offered mixed comments, as Barkin said he would "celebrate" an >2% inflation, while Kaplan said that negative rates would "destroy" the money markets. Bullard sounded particularly upbeat, as he said that U.S. economy could be close to "full recovery" by year end. Separately, House Speaker Pelosi and Tsy Sec Mnuchin both signalled willingness to return to negotiating table over another fiscal relief package. Democratic officials said that they are working on a $2.4tn bill to restart the talks.

• In U.S. politics, senior GOP lawmakers downplayed an earlier suggestion by U.S. President Trump that he would not commit to a peaceful transfer of power, should he lose the election.
• Health data coming out of Europe unnerved watchers, as the UK and France declared fresh records in their daily coronavirus case counts.
• Early doors in Asia, FTSE Russell announced that China's Government Bonds will be included in its World Global Bond Index, starting in Oct 2021 and the yuan gained on the news. Malaysia was kept on a watchlist for possible exclusion from the index.
• E-minis have edged higher from the off. Futures markets are pointing to higher opens in Japan and Australia as well.
• T-Notes holding a 0-01 range, last trade -0-01+ at 139-17. JGB futures re-opened lower, but immediately recouped losses and last sit +5 at 152.20. In Australia, YM unch. & XM +1.0, both rangebound.
• Some very light risk-on flows have emerged across G10 FX space, with AUD rising to the top of the scoreboard & JPY landing at the bottom.