U.S. two- and ten-year Treasury yield spread narrowed to 39 bps, the tightest since July 29.

Kevin Warsh said the Fed must be confident core inflation is moving toward target or the central bank still has work to do, and it is hard to describe current financial conditions as restrictive.

RBI data on Friday showed India’s foreign exchange reserves rose $12.4 bln in the week to Aug. 21 to a record $729.3 bln, above February’s $728.5 bln peak. The rise follows large dollar inflows after the Reserve Bank of India introduced capital-attraction measures in early June, including a special deposit scheme for non-resident Indians that had drawn $72.8 bln by Aug. 21; these inflows have helped avert an unprecedented third straight annual shortfall in India’s external liquidity metrics.