Asian bonds rose alongside Treasury futures as oil prices extended their decline after the US signaled progress in diplomatic efforts to end the war with Iran. Stocks edged up.
Government bonds in Australia and New Zealand rallied, with 10-year yields in both countries falling at least three basis points.
Ten-year Treasury futures also climbed, while cash trading in Treasuries will start in London due to a holiday in Japan. Brent was poised for its longest losing streak in a year as President Donald Trump said US officials had a “very good” meeting with Iranian envoys after Washington renewed efforts to end the conflict. Oil dropped 1.2% to about $98 a barrel.
Meanwhile, MSCI’s Asia Pacific stocks index edged up 0.1% after chipmakers drove the Nasdaq 100 to its first record since June. Equity-index futures indicated more modest gains for Wall Street benchmarks, while European shares were set to open 0.4% higher.
With the economic data calendar thin this week, traders are focused on developments around Iran for signs that oil prices may fall further, easing inflation concerns and pressure on bonds after yields climbed to multi-decade highs earlier this month.
