• Asian stocks were poised for a muted open after the S&P 500 nudged higher. Wall St saw another busy session of bond sales as issuers looked to borrow before key economic data later this wk.
• Australia’s equity b/mark edged up, while futures pointed to a slight gain in Hong Kong and little change in Tokyo. The S&P 500 advanced even after consumer confidence fell for the 1st time in 4 mos., while the Golden Dragon index of US-listed Chinese shares jumped in its 5th day of gains. Treasuries were mixed after a $42-Bn auction of 7-yr notes and a heavy slate of new corporate debt. Australian 10-yr yields rose in early trading.
• Investors are contending w/ an erosion in expectations for how much the Federal Reserve will lower rates and an onslaught of new corporate issuance that has given yld-seeking investors ample alternatives. Traders no longer expect the Fed to cut rates by more than 75 bps in 2024, bringing their view in line w/ what policymakers have indicated as the likeliest outcome.