Fed Yield Cap, Korean Debt Bonanza, World Trade Rebound: Eco Day

(Bloomberg) -- Welcome to Tuesday, Asia. Here’s the latest news and analysis from Bloomberg Economics to help you start the week:

• Fed No. 2 Richard Clarida left open the possibility of employing Treasury yield caps at some point in the future, though he indicated it’s not likely right now
• South Korea is gearing up for another year of record bond issuance as the government prepares to boost its budget by 8.5% in 2021, setting the country on track for a record debt burden
• Global trade is on course to recover more quickly from the coronavirus pandemic than after the 2008 financial crisis, according to Germany’s Kiel Institute for the World Economy
• Chinese authorities have detained an Australian television anchor as relations worsen between the two over trade and security
• Looking out to 2050, China’s economy is set for a sustained slowdown, writes Chang Shu
• Consumer prices are sliding in Europe in the wake of the coronavirus lockdowns: Germany, Italy and Spain all reported negative rates
• As expected, India posted an eye-watering hit to GDP after shrinking 23.9% last quarter -- the biggest contraction among major economies -- and it could force a fiscal rethink
• Long-term effects of the pandemic could still affect Germany a decade on from now, says Jamie Rush
• GMO says it’s time to give up on U.S. Treasuries in a zero-rate world, suggesting investors consider high-yield corporate bonds and EM debt
• Japan’s economy is struggling to recover from a record contraction, says Yuki Masujima, citing high-frequency data
• The global recovery could be job-poor due to structural shifts stemming from the Covid crisis, says ANU’s Warwick McKibbin

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