Man walks past an electronic board showing Japan's Nikkei average and stock prices outside a brokerage, in TokyoSYDNEY - Asia stock markets were softer on Monday ahead of U.S inflation September data this week with investors seeking signals about the Federal Reserve's next likely moves on interest rates.
Investors are pricing in a 93% probability that the Fed will keep rates at current levels after its next meeting ends on Sept. 20 but only 53.5% for another pause at the November meeting, according to CME group's FedWatch Tool. The yield on benchmark 10-year Treasury notes rose to 4.2939% compared with its U.S. close of 4.256% on Friday. The two-year yield, which rises with traders' expectations of higher Fed fund rates, touched 5.0033% compared with a U.S. close of 4.984%.
European gas prices have been volatile since August when news of the potential labour unrest first broke.