Ella 
After the U.S. market closed overnight, dovish comments from Federal Reserve officials pushed U.S. bonds to rebound strongly in Asia today, and risk sentiment improved overnight. Federal Reserve Vice Chairman Philip Jefferson said on Monday that officials may “proceed with caution” after a recent rise in Treasury yields. Fed member Lorie Logan from the Dallas Fed said a spike in long-term rates could mean there is less need for further tightening. Additionally, risk markets have calmed down from initial uncertainty in the Middle East as there are currently no signs of a wider escalation in the conflict.
Global stock markets closed higher yesterday as investors largely believe the conflict in the Middle East will ultimately have no material impact on the global economy. U.S. cash bond trading was closed yesterday for the Columbus Day holiday, but stock investors noted that the futures market showed a sharp decline in yields when cash bond trading reopened this morning. So the bond market ended up having a bigger impact on the stock market yesterday than the conflict in the Middle East.
