By Gina Lee

Investing.com – Asia Pacific stocks were down on Monday morning, with investors bracing for increased bond-market volatility as the continues to spread rapidly.

South Korea’s fell 0.99% by 9:01 PM ET (2:01 AM GMT), with the handing down its latest policy decision on Friday.

In Australia, the inched down 0.05% while Hong Kong’s rose 0.77%.

China’s edged down 0.15% and the was down 0.31%. Chinese shares were in the spotlight after the country’s Securities Regulatory Commission said it would adopt various measures to avoid volatility and “firmly” prevent big fluctuations after they had the worst start for a year since 2016.

Japanese markets were closed during the holiday.

Due to the Japanese holiday, the yield of the U.S. benchmark 10-year note hit its highest point in almost two years. Cash treasuries won’t be traded in Asia as a result.

While volatility continues to rise, investors are still trying to figure out how to revalue assets while central banks tighten their monetary policies. The discovery of a new COVID –19 strain, dubbed ‘Deltacron’ for now, is also on the radar.

“The U.S. Federal Reserve needs to tread carefully in removing policy accommodation; it should not happen too fast otherwise it risks a disruption to the rebound in economic growth and could lead to another ‘taper tantrum,’” AMP (OTC:) Capital, senior economic Diana Mousina said in a note.

The note stated that there will be greater volatility from inflation and Fed rate increases in 2022, as well as geopolitics, as well as U.S. midterm elections.

Over the course of the week, a variety Fed officials will speak, including Atlanta Fed President Raphael Bostic and City Fed President Esther George. Richmond Fed President Thomas Barkin, St. Louis Fed Presidential James Bullard, St. Louis Fed Presiden James Bullard, St. Louis Fed President James Bullard, Philadelphia Fed President Patrick Harker. Chicago Fed President Charles Evans and New York Fed Chief John Williams.

Meanwhile, incumbent Fed Chairman Jerome Powell’s confirmation hearing in the Senate Banking Committee for his second term will take place on Tuesday, while the hearing for Lael Brainard, the vice-chair nominee, is on Thursday.

The data side, China will release its price and indexes Wednesday while the U.S. will publish its later in the day. Investors continue to absorb the U.S. latest jobs report last week, which includes.