Asian equities looked set to rebound after the U.S. announced expanded Treasury
buybacks. In early Asian trade U.S. stock index futures ticked higher. On
Wednesday the majority of S&P 500 components rose despite weakness in
chipmakers. Japan, South Korea and Australia index futures pointed to higher
opens, which would end a two-day slide for regional benchmarks. Elevated U.S.
Treasury yields have kept borrowing costs high, weighing on growth and adding
political risk for Trump and Republicans ahead of the November midterms.
Investors demanding higher returns to offset inf risk triggered the recent bond
selloff; markets are watching whether the Treasury measure will lower yields.
Matt Maley, chief market strategist at Miller Tabak +, said the move reflects
government concern about the bond market and is a 'shot in the arm' that could
lift risk assets in the short term unless investors view it as a sign of
economic weakness.
