Risk sentiment improves ahead of European morning trade
Asian equities are looking to close nearer to the highs for the day as investors start to seek more calm after the 'sell everything' mode post-Powell yesterday.
The short squeeze engineered by BOJ governor Kuroda in the JGB market is also somewhat helping the mood but then again, the Japanese central bank also owns more than two-thirds of JGBs so there's that.
US futures have also ticked higher and are well off earlier lows, near unchanged levels.
This comes as the surge higher in Treasury yields is looking more orderly, keeping around 10 bps higher after Powell's speech yesterday.
That said, sentiment is still rather fragile for the time being but as we have seen in the past year, it doesn't take much for easy money to translate fear into greed.
Much like it has been throughout this week, we'll only get a better sense of the risk mood once Wall Street enters the fray later on in the day.
