Asian Bond Investors Should Look Past Midterms to Oil, Fed

0854 GMT - U.S. midterms have rippled across markets, but for Asian bonds, oil and the Fed matter more than the political arithmetic in Congress, says Rong Ren Goh at Eastspring Investments. "A durable decline in energy prices could ease inflation pressures, restore some flexibility to Fed policy and provide a powerful tailwind for Asian duration markets," he says. Conversely, another energy shock could keep U.S. yields elevated, pressure Asian currencies and introduce more vulnerabilities in regional credit markets. Rather than positioning solely for a divided U.S. government, Goh says Asian fixed-income investors should focus on the trajectory of energy prices, U.S. monetary policy and global risk sentiment. "The biggest market moves may come from what Trump does next."