Asian equities more firm amid the calmer risk mood in markets
Equities more buoyed on the day as investors take some comfort in the perceived notion that China is limiting yuan weakness for the time being.
The improved risk sentiment mainly stems from the fact that the yuan fixing today wasn't as weak as many had expected, despite moving beyond 7.00 per dollar.
However, there's a continued divergence between equities and bonds once again with Treasury yields holding near session lows currently. 10-year yields sit at 1.708%, down by 2.5 bps on the day. That for me is still a signal that markets should remain more cautious than be chasing a risk-on rally of sorts in the session ahead.
USD/JPY holds weaker at 106.09 as such, closing back in on the 106.00 handle as we begin the European morning.
