Stimulus Froth, Yield Watch, Hard-Line Stances at WTO: Eco Day

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

• U.S. Treasury Secretary Janet Yellen and Federal Reserve Chair Jerome Powell appear wary of signs of froth in financial markets, even as they press ahead with economic stimulus measures that are elevating the euphoria
• ECB President Christine Lagarde said her institution is “closely monitoring” the market for government bonds, in a sign that she might act to prevent rising yields
• President Joe Biden’s administration dashed hopes for a softer approach to the WTO by pursuing a pair of his predecessor’s strategies that risk undermining the international trading system
• New Zealand’s central bank may try to dispel talk of monetary tightening at its first policy decision of the year
• A “disinflationary” mindset has taken hold among U.S. businesses and consumers that will be hard to dislodge, said Fed Richmond President Thomas Barkin
• The House Budget Committee advanced President Joe Biden’s $1.9 trillion pandemic-relief legislation, setting it up to pass the lower chamber by the end of this week
• New findings in the U.K., the first country in the western world to roll out Covid-19 vaccines, show the shots provide a high level of protection against infection, illness and death after a single dose
• Interest rates may stay at historically low levels for decades, according to Bank of England policy maker Gertjan Vlieghe
• Canada’s legislature passed a motion designating China’s actions against its Uighur Muslim minority as genocide, increasing pressure on Prime Minister Justin Trudeau to toughen his approach to Beijing
• Elon Musk’s embrace of Bitcoin earlier this month rocketed the cryptocurrency almost 50% higher to more than $58,000. His cold shoulder this weekend whipsawed the largest digital asset
• Meantime, Treasury Secretary Janet Yellen signaled the Biden administration supports research into the viability of a digital dollar

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