Key facts
- Long bond yields are near multi-decade highs.
- Unitree Robotics saw a strong debut on its listing.
- The US Treasury will conduct a $16 billion 20-year note auction.
- The Federal Reserve is set to release minutes from its last meeting.
- Final inflation figures for the Eurozone and Britain are anticipated.
- US retailers Target, TJX, and Lowe's will report earnings.
Long bond yields steadied near multi-decade highs on Wednesday, with traders debating whether the selloff is driven by brighter growth prospects or concerns over persistent inflation and government spending. China's humanoid robotics firm Unitree saw a strong debut, trading six times above its offer price.
The U.S. Treasury is scheduled to auction $16 billion in 20-year notes later on Wednesday, adding to the nation's nearly $40 trillion debt. Investors are scrutinizing these auctions and the Federal Reserve's upcoming minutes from its last meeting, questioning the central bank's ability to control long-term inflation and demanding higher compensation for lending to the U.S. government.
In contrast, China's sovereign futures touched a record high, with investor demand for debt remaining robust, as evidenced by Alphabet's successful bond sale. Unitree's listing also tapped into strong demand for technology exposure, being oversubscribed by retail investors. Meanwhile, the World Robot Conference in Beijing is set to feature over 300 companies showcasing advancements in robotics.
Final inflation figures are also due for the Eurozone and Britain, with UK inflation expected to rise to 2.9%. In the U.S., earnings reports from retailers Target, TJX, and Lowe's will be closely watched following recent soft retail sales data.