Central Banks
BofA warns U.S. dollar could fall if Treasury bond intervention fails
Bank of America’s Michael Hartnett cautions that a failure to cap 30-year yields below 5% could weaken the dollar, while global equity inflows hit a three-week high.
Euro zone wage growth slows in Q2, ECB data shows
Negotiated wages rose 2.44% in the three months to June, down from 2.56% in Q1, according to European Central Bank figures released Friday.
30-year Treasury yield tops 5.33%, outpacing dividend stocks by 2.2 points
The gap between the 30-year Treasury yield and dividend stock yields has widened to 2.2 percentage points, the widest since 2007. History suggests divergent paths ahead for bonds and equities.
Euro zone bond yields steady as U.S. yields climb after volatile week
German 10-year bund yield holds near 15-year high at 3.2572% as U.S. 2-year yield rises 9 bps. U.S. Treasury intervention offers temporary relief amid global bond market turbulence.
US Treasury yields climb after services PMI hits 20-month high
2-year yield rises 3.8 bps to 4.223% as services activity accelerates; 10-year and 30-year also gain. Manufacturing slowdown persists amid geopolitical disruptions.
Markets price sharper ECB rate hikes as hawkish bets rise
Traders lift deposit-rate wagers to near 3% by late 2027, with a September increase seen as the next step. Oil and gas markets remain elevated amid Middle East tensions.
SNB’s Tschudin says negative rates remain an option in Switzerland
Swiss National Bank director Petra Tschudin cites anchored inflation expectations and a stable CPI basket as key factors behind record-low inflation. The central bank retains all policy tools, including sub-zero rates, to meet its 0-2% inflation target.
Barclays flags fiscal dominance as top market risk amid rising bond yields
Barclays warns of growing fiscal dominance as long-end yields climb, with French OAT spreads near post-pandemic highs and U.S. Treasury buybacks offering limited relief. Oil above $90 a barrel and euro strength underscore market jitters.
Euro zone consumer inflation expectations ease in July survey
Median perceived inflation over the past year fell to 3.5% while one-year-ahead expectations dipped to 2.9%. Income growth expectations also softened as spending growth outlook remained steady.
Bank of Korea signals cautious approach to upcoming policy decisions
Senior Deputy Governor Kwon Min-soo emphasizes flexible, careful monetary policy amid inflation pressures and won strength. Next decision due August 27.
IMF’s Tenreyro warns AI-driven productivity may not ease inflation
Research suggests early AI investments could fuel demand-driven inflation before productivity gains materialize, complicating central bank policy.
Bank of America warns of market fallout if U.S. bond plan fails
BofA strategist Hartnett sees dollar weakness and increased short bets on risk assets if 30-year Treasury yields stay above 5%. S&P 500 drops 1.9% amid bond-market volatility.
BOJ’s July 2027 meeting timing fuels speculation on rate hike timing
The Bank of Japan’s next policy meeting, scheduled for July 21-22, 2027, coincides with the expiration of two hawkish board members’ terms, raising questions about the central bank’s normalization strategy.
U.S. Treasury's Bessent to outline Iran sanctions plan on Monday
Secretary Scott Bessent will detail planned measures against Iran and Treasury bond buybacks at a press conference. Bond yields surged before partially reversing after Wednesday's support announcement.
US-Anleihe-Rückkäufe bremsen Zinsanstieg, doch Schuldenängste bleiben
Die US-Regierung verdoppelt Rückkäufe langlaufender Anleihen auf mindestens vier Milliarden Dollar, um den Anstieg der Renditen zu dämpfen. Analysten erwarten jedoch nur eine vorübergehende Wirkung, da strukturelle Schuldenprobleme fortbestehen.
WEF seeks ECB’s Lagarde as next chair amid leadership transition
Christine Lagarde is reportedly open to leading the World Economic Forum after tensions with founder Klaus Schwab eased. The ECB has no comment on the speculation.
Global bond yields ease from multi-decade highs after U.S. Treasury buyback boost
U.S. 10-year Treasury yield pulled back from overnight lows while Japanese and European sovereign bonds rallied after Treasury expanded long-end buyback capacity. Brent crude held above $91 a barrel amid Strait of Hormuz shipping disruptions.
Sweden’s Riksbank holds key rate at 1.75%, flags possible hike
Central bank leaves benchmark rate unchanged but warns it may tighten policy before year-end if inflation pressures persist. Decision aligns with market expectations.
U.S. Treasury doubles buyback operations as Fed policy focus shifts
Upsized Treasury buybacks for 10-30 year debt may test the Fed's dominance in shaping long-term borrowing costs amid inflation and fiscal pressures.
Fed minutes signal bias toward rate hike as Trump urges cut
Minutes from the July Federal Reserve meeting show growing support for higher rates amid persistent inflation, while President Trump reiterates calls for a reduction to ease U.S. debt costs.
U.S. Treasury doubles bond buyback program to $4 billion amid rising yields
Program expansion targets 10- to 30-year Treasuries as borrowing costs climb. Treasury Secretary Bessent signals potential further increases.
U.S. Treasury doubles buybacks as Bessent signals discomfort with yields
U.S. debt tops $40 trillion as Treasury expands buyback program to $4 billion per operation, while Japan and U.S. intervene in currency markets amid bond selloff concerns.
U.S. bond yields ease on Treasury buybacks but rebound quickly
Long-end Treasury yields slipped after the U.S. doubled buyback operations to $4 billion, yet 30-year yields remain near 19-year highs as debt costs remain elevated.
South Korea to launch $72 bln chip windfall fund for youth, AI
Government proposes Future Response Fund to channel semiconductor tax revenue into youth employment, housing and AI investment. Legislation to be submitted with 2027 budget.