Nvidia Results and Warsh Speech Loom Over Turbulent Bond Market

Yesterday's US bond market drama continues as investors await Federal Reserve Chairman Kevin Warsh's speech on Friday and Nvidia's quarterly results tomorrow. The Treasury announced a new mega-support package for the bond market, but its financing mechanism remains unclear.

The US public debt is causing concern, with yields on 30-year bonds hitting a 19-year high last week. To address this, the Treasury doubled the size of its buybacks of maturing long-term securities from $2 billion to at least $4 billion, with Secretary Scott Bessent indicating that the purchases could be even higher.

Asian stocks recovered their initial losses and are heading towards a cautious rise as investors wait for key events. The broad MSCI Asia-Pacific index fell 0.1%, while Japan's Nikkei reversed early losses and rose 0.5%.