In the Asian markets, all eyes remain fixed on China’s Purchasing Managers’ Index (PMI) readings, seeking further cues about the resilience of the world’s second-largest economy. As trading commenced on Thursday, Treasuries maintained stability following a decline of nine basis points in two-year yields, while the 10-year notes eased by seven basis points to hit 4.26%. Similar movements were observed in Australian and New Zealand bond yields, which tracked a downward trajectory on Thursday.
Recent concrete data has lent credence to the narrative of a gentle landing for the US economy. Economic activity witnessed a slowdown in recent weeks, notably as consumers reined in discretionary spending, as outlined in the latest “Beige Book”. Despite this, Gross Domestic Product (GDP) experienced its fastest growth in nearly two years. However, consumer spending didn’t surge as robustly, and the Federal Reserve’s preferred gauge of inflation, the Personal Consumption Expenditures Price Index, was revised downwards.
Meanwhile, in Japan, October’s industrial production exceeded expectations, yet retail sales for the same period failed to meet estimates.
Looking ahead, Thursday will see the release of Eurozone inflation and unemployment data alongside US jobless claims and the PCE deflator, which will provide further insights into global economic indicators.
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