Bond yields surged across developed markets, hitting multi-decade highs due to rising deficits, elevated inflation, and increased AI-driven corporate debt issuance. Investors are demanding higher compensation for holding longer-term government debt, reflecting a recalibration to potentially higher neutral rates.
Brazil's wealthiest individuals have secured a record share of national income under President Luiz Inacio Lula da Silva, according to tax data. This trend is driven by high interest rates fueling financial income, which disproportionately benefits the wealthy, even as labor markets and social programs improve for lower-income citizens.
Global money market funds saw inflows of $46.1 billion in the week through September 2, the largest since early August. Escalating U.S.-Iran tensions and a selloff in global bonds prompted investors to increase cash holdings and favor shorter-duration debt.
Norway's $2.3 trillion sovereign wealth fund, managed by Norges Bank Investment Management, has proposed reducing its U.S. Treasury holdings by nearly $80 billion. The move aims to improve returns and diversification within its bond portfolio.
Bank of England Governor Andrew Bailey warned that rising populist politics poses a significant threat to the independence of central banks globally, potentially undermining their ability to manage monetary policy and ensure economic stability.
More Argentines, particularly gig workers, are turning to fintech apps for loans due to rising living costs and economic reforms. Despite high interest rates, these apps have become a crucial credit source, but a significant portion of borrowers are now struggling to repay, leading to calls for debt relief.
The Japanese yen is on track for its strongest weekly gain in over a month, driven by rising expectations of a Bank of Japan interest rate hike. Meanwhile, the U.S. dollar paused ahead of key jobs data, with traders scaling back bets on a September Fed rate cut.
U.S. job growth likely rebounded in August after a decline in July, with economists forecasting an increase of 56,000 nonfarm payrolls. The unemployment rate is expected to remain steady at 4.1%. Gains may be tempered by job losses related to the termination of Temporary Protected Status for Haitian immigrants.
CME Group has launched its Treasury Link service, designed to mitigate 'legging risk' for fixed income relative-value traders. The new service aims to provide a more level playing field by reducing execution delays in US Treasury versus futures basis trades.
Japan's household spending decreased by 3.6% year-on-year in July, marking the eighth consecutive monthly contraction and missing market forecasts. On a monthly basis, spending rose 0.5%, reversing a prior decline but falling short of expectations.
Seoul stocks opened higher on Friday, tracking overnight gains on Wall Street. Investor sentiment improved after a Federal Reserve official signaled a cautious approach to further monetary tightening, easing concerns about additional U.S. interest rate hikes.
U.S. stocks surged and bond yields dropped Thursday after Federal Reserve Governor Christopher Waller indicated a patient approach to interest rates, suggesting a pause if inflation moderates. Gold prices jumped over 2% and the dollar weakened.
Article restates earlier reporting on Wall Street rally driven by Fed's Waller, adding details on "magnificent seven" stocks.
Wall Street rallied Thursday as Christopher Waller's remarks eased rate hike fears, boosting the Nasdaq and major indexes.
Nvidia acquired Hugging Face for $13 billion, a new detail in the AI sector.
Stocks rallied and bond yields fell after Fed Governor Waller signaled a patient approach to interest rates, while the yen surged on BOJ speculation.
The Netherlands central bank has relocated approximately 86 metric tons of gold reserves from New York and Ottawa to London, citing increasing geopolitical uncertainty and a need to enhance crisis preparedness and the tradability of its gold holdings.
The Netherlands moved 90 tons of gold from the U.S. Federal Reserve due to geopolitical unrest.
The Netherlands has moved $12 billion in gold reserves from North America to London due to geopolitical concerns.
British citizens are advised to stockpile food and water for several days due to potential power and water outages. The UN warns of a 'supersized' El Niño, potentially the largest in 1,000 years, exacerbating extreme weather globally and threatening a wet, stormy winter in the UK.
UK gilt yields have reached levels not seen since the financial crisis, driven by soaring energy prices and global interest rate increases. The IMF expressed concern over rising borrowing costs, particularly for emerging and low-income countries, while the UK faces pressure on its budget due to high debt and rising yields.
US Treasury yields dropped from multi-year highs on Thursday after Federal Reserve Governor Chris Waller signaled a patient approach to interest rates, suggesting he would support holding them steady if inflation data continues to cool. Stock markets rallied on the news.
Article adds that Fed Governor Christopher Waller suggested a patient approach to interest rates if inflation cools.
Investors celebrated falling bond yields on Thursday after a top Fed official eased concerns about further interest rate hikes.
Initial jobless claims rose slightly last week, indicating a stable U.S. labor market with low layoffs. Services businesses reported increased input prices, suggesting inflation is not limited to goods. The economy expanded 2.1% in Q1 2026, driven by business investment.
US inflation remained elevated in July, with the personal consumption expenditure price index holding steady at 3.7% year-over-year, unchanged from June. Core prices also remained flat, highlighting the Federal Reserve's challenge in balancing interest rate decisions amid persistent price pressures, particularly from energy costs.
The Bureau of Labor Statistics' 2026 revisions to employment figures indicate a minor downward adjustment of 0.1% of the total workforce. This smaller revision suggests increased accuracy in the jobs numbers, contrasting with larger historical adjustments.
Australia's Bureau of Meteorology forecasts the current El Niño event to be the strongest on record, potentially persisting until early 2027. Preliminary research suggests climate change has significantly increased the likelihood of such extreme conditions, with experts warning of global impacts.
