Bond

• Traders are pricing in a 93% chance of a Federal Reserve interest rate hike ahead of this week's meeting following a bond sell-off and persistent August inflation. • Market participants believe the Fed rarely deviates from rate decisions when conviction is this high, meaning a surprise hold could trigger a sharp rally in short-term bonds. • A decision to hold rates steady risks faster yield increases and could damage the Federal Reserve's credibility in its efforts to fight inflation.

NSW Institute for Paediatric Trauma will help doctors, researchers and specialists prepare for trauma casesGet our new political email, free app or daily news podcastA new institute dedicated to improving emergency medical care for severely injured children will be established in New South Wales following recent high-profile trauma events in the state.Based at the Sydney Children’s hospital in Randwick, the NSW Institute for Paediatric Trauma will bring together clinicians, researchers and specialists to deliver advanced training and simulations across the health system. Continue reading...

• Asian stock markets remained steady recently as a rebound in artificial intelligence shares balanced out pressures from rising oil prices and bond market volatility. • Crude oil prices have climbed firmly above $100 per barrel amid an intensifying conflict in the Middle East. • High energy costs and persistent global price pressures limit the ability of policymakers to lower interest rates in the near term.

Economists urge John Healey to press Bank to change policy that is costing the exchequer billions of poundsEconomists have urged the chancellor, John Healey, to press the Bank of England to slow down its bond-selling programme that has already cost the exchequer billions of pounds.The Bank’s monetary policy committee (MPC) meets this week to not only decide the level of interest rates but also whether they should freeze or slow the sale of government bonds, known as gilts, bought as part of the rescue operation after the 2008 banking crash. Continue reading...

• Asian high-yield debt has outperformed most global bond markets so far this year as cheaper borrowing costs in China improve issuer finances. • These junk dollar bonds returned 4.3% year-to-date, more than double the 2% return seen by similar US bonds. • The trend benefits investors in high-risk debt markets as the yield gap between Chinese and US benchmark bonds reaches a record high.

• Asian technology stocks fell sharply on Monday as investors shifted away from high-growth chipmakers. • The decline was driven by rising bond yields and renewed concerns regarding the sustainability of the artificial intelligence rally. • This volatility creates immediate risk for investors holding high-growth tech assets and semiconductor stocks in Asian markets.

• Euro zone government bond prices faced their worst weekly performance since the start of the year, though they recovered modestly on Friday. • Two-year Italian bonds were the worst performers among G7 nations this week, with yields rising by 26.4 basis points. • French Finance Minister Roland Lescure stated on Friday that the economy will grow less than expected and the government will miss its budget deficit target.

• Asian stocks and bonds fell recently following a rise in oil prices and new inflation data. • U.S. Treasury yields reached multiyear highs as investors anticipated a potential interest rate hike from the Federal Reserve. • Higher borrowing costs and rising energy prices create financial strain for bondholders and equity investors in Asian markets.

• India is joining other Asian nations like Singapore and Hong Kong in the development of tokenised bonds, which are digital versions of traditional debt securities. • The Hong Kong Mortgage Corporation raised its first digitally native bonds in June, following the Hong Kong government's multi-currency digital bond sale in November last year. • A lack of secondary trading and interoperability, or the ability for different systems to communicate, could limit the growth of these markets in emerging economies.

• Global bonds experienced a widespread selloff as U.S. 10-year Treasury yields climbed to 4.97%. • The surge was driven by oil prices exceeding $100 per barrel and expectations that the Federal Reserve and Bank of Japan will raise interest rates. • Higher sovereign yields increase borrowing costs for governments and lead to steeper mortgage rates for consumers.

• A recent Markets Pulse survey indicates that rising US Treasury yields are pushing the US stock market toward a potential correction. • RSM chief economist Joseph Brusuelas stated that actual data and central bank policy are providing a "potent reality check" for risk-loving investors. • Higher bond yields typically lower the present value of future corporate earnings, which can lead to a decline in equity prices for investors.

• European Central Bank President Christine Lagarde warned of ongoing inflation risks, triggering a selloff in European bonds. • Bond yields reached multi-year highs as investors reacted to Lagarde's comments and rising energy prices. • Higher bond yields increase borrowing costs for governments and businesses across Europe.

• European bond prices fell sharply after European Central Bank President Christine Lagarde warned that energy shocks are increasing inflation risks. • Germany's 10-year bond yield reached a high of 3.50%, while the spread between French and German bonds widened to 91 basis points. • Traders are now pricing in three additional interest rate hikes, which increases borrowing costs for governments and businesses across the eurozone.

• Eurozone bond yields have risen to multi-year highs as the European Central Bank signals a rate hike cycle, which will increase borrowing costs for governments and individuals. • The gap between French and German 10-year bond yields has widened to over 90 basis points, its highest level since 2012, indicating a higher risk premium for French debt. • This surge in bond yields will raise costs on government borrowing and mortgages, potentially making stocks less appealing to investors and affecting economies throughout the euro zone.

• Eurozone bond yields have surged to multi-year highs as the European Central Bank raises interest rates and inflation forecasts, with Thursday's sharp rise affecting government borrowing and mortgage costs. • The gap between French and German 10-year bond yields has risen to its highest since 2012 at more than 90 basis points, a measure of the risk premium attached to French debt. • This increase will be felt throughout economies and markets, potentially making stocks less appealing and increasing costs for governments and individuals.

Scott Bessent made announcement on Wednesday as bond yields rose to highest point since 2008 financial crisisUS politics live – latest updatesThe US treasury will buy back $6bn worth of government debt in an effort to alleviate a sell-off in the US bond market, the treasury secretary, Scott Bessent, announced on Wednesday.Rising inflation and uncertainty from the war in Iran has spooked investors from US bonds, what has historically been known to be one of the safest investment vehicles. Treasury yields have been rising, with the yield for the 30-year treasury bond hitting about 5.2% – the highest yield since the 2008 financial crisis. Continue reading...

High yields threaten to wipe out at least half of the £24bn headroom John Healey was expecting to have for his budgetThe UK government was forced to pay the highest interest rate for a 30-year bond since 1998 on Tuesday, underlining the fiscal challenges facing the chancellor, John Healey.Echoing the global bond market sell-off that has driven up yields, or interest rates, on government borrowing across major markets, the Treasury paid 5.82% to borrow £4bn. Continue reading...

• Asia Pacific borrowers surged into the dollar bond market on Tuesday to secure funding before interest rates potentially rise further. • Mitsubishi UFJ Financial Group Inc., the largest bank in Japan, is among more than 10 regional issuers seeking to sell debt, including a $3.5 billion offering. • This rush indicates a broader global trend of companies locking in borrowing costs now to avoid more expensive financing in the future.

• Investors are focusing on upcoming U.S. inflation data and an expected interest rate hike from the European Central Bank. • Poland's central bank is expected to keep its key interest rate unchanged at 3.75% during its decision on Wednesday. • These economic indicators will determine if the Federal Reserve continues to raise interest rates, affecting global currency and bond markets.

• European stock markets rose as the global bond selloff eased, providing a more stable environment for equity investors. • Simultaneously, the Bank of Canada opted to hold interest rates steady amid economic uncertainty driven by fluctuating oil prices and potential tariffs. • In Canada, the TSX saw a significant rally led by mining companies as precious metals stocks dominated the top gainers.

• European stock markets rose on Thursday as crude oil prices retreated and bond market pressures stabilized. • Key market movements included a 10% jump for Soitec and a 3.6% increase for Sofina following positive net asset value growth for H1 2026. • Investment firm Elliott took a stake in Deutsche Telekom and urged the company to abandon any potential merger plans with its U.S. subsidiary, T-Mobile US.

• Asian stock markets rose, with South Korea’s KOSPI gaining 1.5% and Singapore’s Straits Times Index increasing by 0.7%, as bond yields retreated and oil prices steadied. • Mitsubishi Corp climbed nearly 5% and financial stocks advanced following comments from Berkshire Hathaway CEO Greg Abel, who reaffirmed the firm's long-term commitment to Japanese investments. • The rally is driven by Berkshire Hathaway's existing 10%+ stakes in major Japanese trading houses and signals that the conglomerate may further increase these holdings.

• Stock markets rallied and bond yields declined following comments from Federal Reserve Governor Christopher Waller, who signaled a patient approach toward interest rate adjustments. • The market reaction reflects investor optimism that the Fed may avoid aggressive rate hikes in the immediate future. • Investors are now closely monitoring the upcoming U.S. monthly jobs report to gauge the current strength of the labor market.

• Italian 10-year government bond yields are rising in tandem with European natural gas prices, creating a feedback loop where high energy costs drive inflation. • The European Central Bank (ECB) is expected to hike interest rates at its next meeting and again by December to counter persistent inflation. • This situation is critical because rate hikes do not resolve energy supply shortages and may stifle demand within an already fragile European economy.

• European stocks trended upward as the recent global bond selloff began to ease, providing a boost to equity markets. • In the commodities sector, gold prices climbed above $4,400, driven by a weaker U.S. dollar and falling yields that renewed investor demand for bullion. • Oil prices experienced a decline following a three-session rally, influenced by Donald Trump downplaying the risk of war with Iran and an increase in flows through the Strait of Hormuz.

Swap rates rise to three-year high as increase in oil prices leads to fears of higher inflationBusiness live – latest updatesHomeowners in the UK are braced for a jump in mortgage rates, driven by higher inflation and interest rate increase expectations amid turmoil in the global bond markets.UK swap rates, which lenders use to price mortgages, have risen to a three-year high, as this week’s global bond market sell-off ripples through the economy. Continue reading...

• Asian stock markets rose, with South Korea’s KOSPI advancing 1.5% and Singapore’s Straits Times Index gaining 0.7%, as bond yields retreated and oil prices steadied. • Mitsubishi Corp climbed nearly 5% and financial stocks surged following comments from Berkshire Hathaway CEO Greg Abel, who reaffirmed the firm's long-term commitment to its Japanese investments. • The rally was bolstered by Berkshire Hathaway's existing 10%+ stakes in major Japanese trading houses and signals that the conglomerate may increase these holdings.

• European shares declined as investors reacted to rising bond yields and growing concerns over energy-driven inflation. • The retail sector was particularly hard hit, falling 2.3%, while Italian betting firm Lottomatica tumbled 7.7% following the announcement of its takeover of Spain’s Cirsa. • Despite the broader market dip, the mid-term outlook for European banks remains positive due to resilient manufacturing investments and steady loan growth.