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Asian dollar bond yields climbed as traders increased wagers that the Federal Reserve will raise rates, according to a WSJ report relayed by First Squawk. The move reflects growing sensitivity of regional credit markets to U.S. monetary policy expectations. Higher Treasury yields typically spill over into Asian dollar debt, raising borrowing costs for issuers across the region. Investors will watch upcoming U.S. inflation and employment data, along with Fed commentary, for confirmation of the rate path.

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Federal Reserve, Asian debt markets, WSJ