Central Banks
HSBC raises U.S. Treasury yield forecasts on hawkish Fed shift
Bank lifts 2-year and 10-year yield projections for 2026-27, citing rising odds of a September rate hike and risks to the Fed’s dual mandate. Curve seen steepening amid fiscal deficits.
Swiss inflation hits two-year high, SNB rate hike odds rise
August CPI surge to 0.8% exceeds forecasts, lifting expectations for a potential Swiss National Bank rate increase by late 2027. Energy prices drive the jump while core inflation remains subdued.
ECB’s Schnabel seen leaving early for IMF role, report says
Executive board member Isabel Schnabel may step down before her 2027 term ends to join the IMF. Bundesbank’s Nagel would be Germany’s sole candidate to replace Lagarde.
ECB's Schnabel may leave early for IMF role, Handelsblatt reports
Isabel Schnabel, ECB executive board member, is in talks to head the IMF's Monetary and Capital Markets Department, potentially leaving her post before her 2027 mandate ends. A reshuffle at the ECB board could follow.
Malaysia holds benchmark rate at 2.75% as growth remains strong
Central bank cites resilient economy and stable inflation as reasons for maintaining policy rate unchanged. Survey of 31 economists showed broad consensus on decision.
Global bond rout pauses as European, Aussie yields retreat from peaks
German and Australian 10-year yields fall from multi-year highs after a week of aggressive selling, while U.S. labor data tempers rate-hike bets ahead of ECB meeting.
Global bond sell-off pauses as European, Australian yields retreat
European and Australian government bond yields fell on Thursday, halting a global sell-off amid mixed U.S. labor data and ahead of key economic reports.
European and Aussie bond yields retreat from multi-year highs
Germany and France saw two- and 10-year yields ease after seven-session climb; Australia’s 10-year yield slips from 15-year peak. U.S. private payrolls miss forecasts.
ECB’s Vujčić highlights role of household expectations in monetary policy
Vice-President cites ECB’s Consumer Expectations Survey as critical tool for tracking inflation perceptions, spending plans and policy transmission amid geopolitical uncertainty.
JPMorgan strategist links bond yield rise to AI-driven productivity gains
AI investment surge boosts corporate borrowing and long-term yields, JPMorgan's U.S. head of investment strategy says. Semiconductor sector correction masks underlying growth potential.
Boston Fed's Collins flags 'mixed' U.S. inflation readings at Jackson Hole
Boston Federal Reserve President Susan Collins says July PCE data shows uneven price pressures, with some signs of easing but lingering risks. Fed policy remains data-dependent as officials assess disinflation progress.
Boston Fed's Collins flags mixed inflation, keeps rate hike option open
U.S. inflation data showed divergent trends in July, with headline PCE rising 3.7% while core pressures eased toward the Fed's 2% target. Boston Fed President Susan Collins said policy remains data-dependent amid rising Treasury yields.
Fed’s Hammack sees inflation easing slowly, rate hike still likely
Federal Reserve Bank of Cleveland President Beth Hammack forecasts U.S. inflation at around 3% by year-end, with limited progress toward the 2% target in 2025. She signals a rate hike remains on the table to address price pressures.
Brazil DI rates pare after jobs data but curve rises on hawkish Fed tone
Short-term Brazilian interbank deposit rates slipped after July job creation undershot forecasts, but the curve steepened as Fed Chair Kevin Warsh signaled a hawkish stance at Jackson Hole.
ECB faces dilemma as rate hike risks fueling market turmoil
A 25-basis-point hike expected next week tests the ECB's balancing act between persistent inflation and financial stability amid rising bond yields and debt concerns.
AI-driven borrowing fuels bond market optimism, JPMorgan says
Rising long-term yields may reflect expectations of AI productivity gains rather than inflation concerns, as AI-related debt issuance surges to $220 billion. JPMorgan Private Bank favors shorter-duration credit amid hawkish rate pricing.
Warsh’s Jackson Hole speech to scrutinize Trump-era inflation legacy
Former Fed chief Kevin Warsh’s upcoming Jackson Hole remarks may reframe the debate over U.S. inflation under President Donald Trump, as markets weigh policy credibility and election-year pressures.
Fed’s Hammack sees inflation at 3% by end-2026, gradual decline in 2027
Federal Reserve Bank of Cleveland President Beth Hammack projects U.S. inflation will ease to around 3% by year-end 2026, with limited further progress toward the 2% target in 2027.
Fed’s Warsh signals resolve on inflation but leaves rate path unclear
Investors welcomed clearer inflation guidance from Federal Reserve Chair Kevin Warsh, though uncertainty persists over whether the central bank will raise rates in September. Treasury yields and rate-hike odds rose after his Jackson Hole remarks.
ECB’s Kocher says euro zone economy showing signs of momentum
Austrian central bank chief cites resilience in growth despite inflation pressures and geopolitical drags. ECB policy path remains data-dependent amid Jackson Hole remarks.
Warsh signals subtle shift in Fed guidance at Jackson Hole
Federal Reserve Chair Kevin Warsh outlines a more measured approach to policy communication while emphasizing inflation progress. Markets parse signals ahead of September decision.
HSBC sees 5% Treasury yield as key threshold for equities
HSBC warns sustained rise in 10-year Treasury yield above 5% could pressure stock valuations, though current levels remain below that level. Financials, energy and industrials favored if rates stay elevated.
Bank of Canada poised to hold rates as growth, trade risks collide
Strong second-quarter expansion and 3% inflation pressure the central bank to maintain its 2.25% policy rate, despite escalating U.S. tariffs and retaliatory measures.
Brazil's central bank weighs measures to curb rising household debt
Authorities examine limits on credit card and unsecured loan exposure before imposing a debt-to-income ceiling amid record household debt-service commitments.