No Sweat Fed, Yellen Also Unfazed, Next Move for YCCers: Eco Day

Welcome to Wednesday, Asia. Here’s the latest news and analysis from Bloomberg Economics to help you start the day:

  • The Fed is allowing market-determined interest rates to organically tighten financial conditions through the early stages of this economic cycle, says Carl Riccadonna. In contrast, Bill Gross said he’s short Treasuries and expects U.S. inflation to accelerate to 3% to 4%
  • As rising government bond yields stir up angst on financial markets, one person unfazed is U.S. Treasury Secretary Janet Yellen. Her own go-to measure of debt costs is headed in the opposite direction
  • Investors are pushing the world’s only practitioners of yield-curve control -- Japan and Australia -- toward decisions on the future of their pioneering monetary policies
  • A White House official said the U.S.’s first high-level, in-person talks with China later this week “could be difficult” as top officials spent their first trip abroad rallying Asian allies to a united China approach
  • The ECB is shielding the euro-zone economy from higher bond yields partly because the region is rolling out its fiscal stimulus too slowly
  • Money didn’t buy pandemic protection. China was among the best outcomes, the U.S. and U.K. among the worst, writes Scott Johnson
  • Brazil spent more money shielding its economy from the pandemic slump than almost any other emerging nation, and a number of rich ones. It put much less effort into containing the pandemic itself
  • Russia may spend billions from its wealth fund on infrastructure and other investments, and projects related to Rosneft PJSC’s huge Vostok Oil venture in the Arctic are high on the list of candidates
  • Goldman Sachs led U.S. banks plowing billions of fresh cash into China in 2020, undeterred by political turmoil as the world’s second-largest economy further opens its $50 trillion financial market

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