Asian shares traded cautiously and bonds nursed small losses on Tuesday as investors braced for an eventful week that includes central bank meetings, a slew of earnings reports and key U.S. economic data.
Despite Monday's declines, the S&P 500 remained on track to post its biggest January gain since 2019.
Markets will also grapple with a flood of U.S. economic data, culminating in Friday's payrolls report for January. Investors see signs of weakening in the labour market as a key factor in bringing down high inflation. The two-year yield , which rises with traders' expectations of higher Fed fund rates, touched 4.2402% compared with a U.S. close of 4.261%.
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