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Asian markets could be in for a choppy ride on Tuesday, with investors unsure whether to interpret Monday's steep fall in U.S. Treasury yields and the dollar as an encouraging sign for risky assets or a warning that growth is evaporating. If so, it will suggest the 'bad news is bad news' narrative is taking hold - easing financial conditions on their own are not enough to lift asset prices; instead, the deteriorating macro conditions driving down yields and the dollar are what's important for asset prices. The U.S. growth engine is particularly important for Asia right now because China's post-lockdown recovery is so fragile, and uncertainty persists around Japan's policy normalization, rising bond yields and record weak currency.

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