Job Growth Cools and Unemployment Ticks Higher - The New York Times

• Asian markets experienced volatility on Tuesday as investors awaited the release of U.S. jobs data. • The 10-year Treasury yield reached 5.34% while fiscal instability in France pressured the euro and supported higher oil prices.

• Asian stock markets fell following extreme volatility in bond and foreign exchange markets ahead of upcoming US employment data. • The benchmark 10-year US Treasury yield reached 5.34%, its highest level since 2002, after recording the largest quarterly increase in 32 years.

• Emerging Asia policymakers excluding China are facing economic pressure in October 2026 due to a strong US dollar and a lingering energy shock from the first quarter. • Malaysia and Indonesia currently hold a 200 basis point premium in 10-year real yields, which are the returns on bonds after adjusting for inflation.

• Asian stock markets declined recently as investors reacted to volatile swings in currency and bond markets. • Market instability was driven by rising oil prices caused by military tensions in the Gulf region and concerns over French bond stability.

• Candriam Chief Investment Officer Nicolas Forest warned that the French bond market is approaching stress levels similar to those seen during the Eurozone debt crisis. • French-German yield spreads, which measure the difference in borrowing costs between the two nations, have reached highs not seen since 2011.

• French government bond yields surged recently, increasing pressure on the European Central Bank to intervene in the market. • The European Central Bank risks being pulled into the turmoil as France grapples with growing global and domestic pressures on its finances.

• The European Central Bank updated its technical reporting requirements for quarterly statistical information on loans to non-financial corporations. • These amendments align loan reporting with the revised NACE, which is the standard statistical classification of economic activities in the European Union.

• Fed funds futures trading currently indicates a 72% probability that the U.S. central bank will keep interest rates unchanged in October. • Christopher Hodge, a chief U.S. economist at Natixis CIB Americas, stated that a strong jobs report alone would likely not trigger a rate hike.

• Financial markets are awaiting the release of the Eurozone Consumer Price Index (CPI) and the US Non-Farm Payrolls (NFP) report today. • These reports provide critical data on inflation in Europe and employment levels in the United States.

• The household saving rate in the euro area fell to 14.2% during the second quarter of 2026. • This decline from 14.4% in the first quarter occurred because consumption grew by 1.3%, outpacing the 1.1% growth in gross disposable income.

• The U.S. economy added fewer jobs than expected in September, causing the unemployment rate to rise. • Nike shares fell 9% following a revenue miss and weak guidance for future performance.