Treasury yields increased as the dollar reached its highest level in two years before the release of important US inflation data, which could impact expectations for Federal Reserve interest-rate cuts.

Two-year US yields, which are influenced by Fed policy, reached their highest level since July, while the strength of the dollar brought the Japanese yen closer to the significant threshold of 155.

Asian markets are expected to open lower after a significant rally in the US, with Sydney's equities dropping over 1%. Futures indicate declines in Tokyo and Hong Kong, reflecting a pullback after the S&P 500 recorded its largest five-day gain in a year.