Fed official Musalem said rising long-term bond yields are driven by expectations of higher policy rates.

During Friday's Asian session US Treasuries accelerated gains as a sell-off in US tech stocks pushed investors into government debt. Yields across UST tenors fell at least 3bp, extending New York declines. Australia, Japan and New Zealand 10‑year yields dropped more than 5bp. The move followed disappointing tech results, including Alphabet, which heightened doubts over the sustainability of the AI trade and boosted safe‑haven flows. The benchmark 10‑year UST yield is down nearly 40bp in October and is set for its first monthly decline since February. NAB's Sydney head of rates strategy said bonds saw renewed inflows after this week's tech reports. A Nomura senior rates strategist in Sydney said valuation stress in mega‑cap tech and Alphabet's weak results are diverting some cash into bonds, and the rally could continue because post‑meeting press comments were not viewed as particularly hawkish and AI concerns are likely to persist.

ECB survey: forecasting institutions marginally raised wage-growth expectations.