US Treasury yields climbed Tuesday as investors awaited key inflation data and weighed developments in US-Iran negotiations. The 10-year Treasury yield rose over 3 basis points to 4.483%, with the 2-year and 30-year yields also higher. Crude prices fluctuated amid the geopolitical tensions.
US Treasury yields climbed on Tuesday, with the 10-year note yield rising over 3 basis points to 4.483%. Investors are anticipating Thursday's release of the May Personal Consumption Expenditures (PCE) price index, the Fed's preferred inflation gauge, which is expected to show an increase.
UK government borrowing in May reached £23.3bn, a nearly third increase year-on-year and £5.6bn above OBR forecasts. Rising inflation, partly due to the Middle East conflict, drove up debt interest costs to a record high for May. Greater Manchester mayor Andy Burnham's potential leadership challenge is noted, with his fiscal pledges being watched by investors.
UK public sector net borrowing hit £23.3bn in May, significantly higher than the £18.5bn forecast by economists. This surge, attributed partly to the economic impact of the Iran war and increased interest costs, presents fiscal challenges for potential Labour leader Andy Burnham.
Treasury yields showed mixed movement Thursday after Kevin Warsh's initial Federal Reserve meeting. The 10-year yield was flat, the 2-year rose, and the 30-year fell. The Fed held rates steady, signaling potential future hikes and removing language favoring cuts, bolstering market confidence in Warsh's approach to inflation.
Foreign governments, banks, and companies are increasingly issuing yuan-denominated "panda bonds" in China due to significantly lower borrowing costs compared to dollar markets. This trend is driven by Beijing's push to internationalize the yuan and a widening interest rate gap, with issuance volumes reaching record highs.
Foreign governments, banks, and companies are increasingly issuing yuan-denominated "panda bonds" in China's domestic market. This surge is driven by significantly lower borrowing costs in China compared to Western markets and Beijing's efforts to internationalize its currency.
The US Federal Reserve kept interest rates unchanged on Wednesday. Policymakers, however, anticipate a rate hike later this year due to persistent inflation concerns. New projections show nine officials expect a hike by the end of 2026.
DoubleLine Capital CEO Jeffrey Gundlach stated that new Fed Chair Kevin Warsh adopted a more hawkish tone than anticipated, emphasizing price stability and signaling a reduced inclination for easy monetary policy. Gundlach believes this strengthens the case for owning long-term U.S. Treasuries.
US Treasury yields edged higher Wednesday as investors awaited the first Fed policy meeting under new Chair Kevin Warsh. While rates are expected to hold steady, focus is on Warsh's communication and potential dovish signals, contrasting with 8 years under Jerome Powell. UK inflation eased slightly, causing gilt yields to fall.
US Treasury yields declined Tuesday ahead of the Federal Reserve's policy meeting, with easing inflation and interest rate hike expectations. A provisional peace agreement between Washington and Tehran also contributed to the fall.
The Bank of Japan has increased its policy rate to 1%, a 31-year high, to combat inflation driven by rising oil costs. This move occurs despite recent falls in oil prices and a four-year low in Japan's core inflation, as policymakers aim to stabilize underlying inflation near their 2% target.
The Bank of Japan raised its benchmark interest rate to 1 percent, the highest since 1995, citing inflation risks from rising oil prices linked to the US-Israel war on Iran. This move signals a shift away from decades of ultra-loose monetary policy.
Chipmaker Nvidia is set to sell $25 billion in investment-grade debt, its first bond sale in five years, to test investor appetite for the AI sector. The offering, upsized from $20 billion due to strong demand, will feature maturities from two to 30 years.
The Federal Reserve is anticipated to maintain interest rates at its upcoming policy meeting, providing minimal relief for U.S. households struggling with affordability. Despite President Trump's preference for lower rates, current inflation levels may push the Fed towards considering hikes, creating a potential conflict with the administration.
John Healey resigned as UK Defence Secretary after being offered a £13.5bn increase in defence spending over four years, which he deemed insufficient. Chancellor Rachel Reeves resorted to budget cuts and departmental reserves to fund the MoD's demand for £18.5bn. The situation highlights the challenge of funding Labour's defence spending pledges, with options of spending cuts, tax rises, or borrowing all facing political hurdles.
The World Bank has warned that the Middle East conflict could slow global economic growth to 2.5% in 2026, down from 2.9%, due to surging energy prices and inflation. Developing countries are particularly at risk, with the bank pledging up to $100bn in support.
The World Bank forecasts global economic growth to slow to 2.5% this year, citing the Middle East war, rising inflation, and borrowing costs. The report highlights potential disruptions to oil flows, increased fertilizer prices, and a widening gap between developed and developing nations.
BitMine raised ~$274M via 3.5M shares of preferred stock at $80/share to fund Ethereum acquisitions, staking infrastructure, and potential stock buybacks, despite facing significant losses on its ETH holdings.
The ongoing war may continue to affect consumer and business sentiment in the Asia-Pacific region due to higher energy prices and supply chain disruptions, despite CFOs remaining cautiously optimistic about business prospects.
The article questions the dominance of economic considerations in British politics, arguing that "market stability" is a constructed concept. It suggests that Labour could exploit a political opening by challenging conventional economic thinking, which has led to instability and public discontent.
Bank of England Governor Andrew Bailey indicates no immediate interest rate hike due to uncertainty over the Iran war and weak UK growth, tolerating temporary above-target inflation but warns of action if second-round effects emerge.
Treasury yields fell slightly as investor optimism for a potential US-Iran war settlement persisted despite ceasefire tensions, with the 10-year yield dropping to 4.481%. Oil prices declined on peace hopes, while global bond markets rallied.
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