Treasuries extended their rally after the New York close and throughout Asian trading as investors sought the safety of government bonds amid a renewed technology-led selloff, according to a note from Commerzbank.
Oil prices have retreated even as tensions in the Middle East persist, reflecting a market that is more focused on the outlook for global demand than on potential supply disruptions. Brent oil was back to less than US$74 a barrel, said Commerzbank.
A cargo ship near Oman was struck by an unidentified projectile. Reports suggested Iran may have been involved, although the White House cautioned that it's too early to say who's responsible, the bank said.
The US dollar weakened in "volatile" trading, according to Commerzbank. Japan's Nikkei shed more than 4.5%.
Federal Reserve officials are holding a cautious tone, with New York's John Williams saying monetary policy is "well positioned" to return inflation to the Fed's 2% target, though inflation remains "unquestionably elevated." Chicago's Austan Goolsbee pointed out the inflation report "wasn't all negative."
In Asia, Tokyo's consumer price index came in stronger than expected on the headline measure, while core inflation was in line with expectations.
In Europe, Germany's federal and state governments reached agreement on fiscal reforms to help ease the financial burden on municipalities, Commerzbank added.