Five Things You Need to Know to Start Your Day: Asia

Good morning. US Treasuries fell across the curve. Fed rate-cut odds for June dipped below 50%. The yen weakened toward 152 per dollar. Here’s what’s moving markets. — Isabelle Lee

Bond traders priced in less monetary policy easing by the Federal Reserve this year — and briefly set the odds of a first move in June to less than 50% — after a gauge of US manufacturing activity showed expansion for the first time since 2022. The amount of Fed easing priced into swap contracts for this year dropped to fewer than 65 basis points — less than Fed policy makers themselves have forecast — after ISM manufacturing for March exceeded all estimates in Bloomberg’s survey of economists. Treasuries fell across the US curve — with 10-year yields climbing more than 10 basis points. The selloff was already under way before the ISM data release as traders reassessed the outlook for monetary policy based on economic figures and comments by Fed Chair Jerome Powell on Friday, when US markets were closed. Equities edged lower after the S&P 500 notched its fifth-straight month of gains — spurring speculation of a consolidation or pullback.