Bonds steady as Fed minutes, US debt auction loom

U.S. Treasury yields were steady in Asia on Thursday after the U.S. Treasury announced it will double buyback sizes for 10- to 30-year Treasury debt securities to at least $4 billion per operation. This intervention marks the second time this month that U.S. Treasury Secretary Scott Bessent has stepped in to counteract market moves, following intervention in the currency market to stem the yen's slide. Analysts warn that Bessent's willingness to interfere with market forces could prove costly in the longer run, as total U.S. debt has topped $40 trillion for the first time and investors globally are demanding greater compensation to absorb the borrowing needs of developed economies.

Elsewhere, Australian employment unexpectedly fell in July, and the jobless rate hit its highest point since late 2021, adding to signs of a cooling labor market and easing pressure for another interest rate hike. Markets are pricing in little chance of a rate hike from the Reserve Bank of Australia next month, but a move by the end of the year is still viewed as a coin toss. Sweden's Riksbank is seen keeping its policy rate unchanged at 1.75% later in the day, given mild headline inflation thanks to a largely fossil-fuel-free energy system.