Borrowing

• The Treasury Borrowing Advisory Committee (TBAC) submitted a report to the Secretary of the Treasury on August 4, 2026, analyzing recent global market influences. • The report highlights how the Iran conflict significantly impacted energy prices, with Brent crude peaking near $126 in the spring before dropping to the low-$70s by June. • This volatility underscores the sensitivity of global financial markets to geopolitical instability and energy price fluctuations.

• The Trump Administration issued an economy statement to the Treasury Borrowing Advisory Committee highlighting a strong national economic performance. • Growth is primarily driven by robust business investments in intellectual property and equipment, alongside solid household consumption. • Current data regarding sales, earnings, and investments suggest the economy is well-positioned for continued expansion.

The Federal Reserve voted to hold its key interest rate steady, sending stocks tumbling, as US claimed to hit ‘dozens’ of Iranian targets. Plus the origins of Coca-Cola may have been found … in ItalyGood morning. US government borrowing costs have hit their highest level since 2007 after the Federal Reserve voted to hold its key interest rate steady, feeding fears that the central bank may not move fast enough to tame a rise in inflation. Kevin Warsh, the Fed chair, said the bank would “not waver” in its commitment to tackling rising prices.The decision to leave rates on hold has spooked investors, who are worried about the US economy’s ability to absorb a rise inflation, triggered by Donald Trump’s war in Iran. US inflation cooled to an annual rate of 3.5% in June after Washington and Tehran agreed a brief ceasefire – but this has since ended. US stocks fell sharply on Wednesday, with the blue chip S&P 500 index closing down 1.5%. The Dow Jones industrial average fell 2.2% and the tech-heavy Nasdaq was down 1.7%. Continue reading...

Bank’s chair pledges to keep up fight against inflation but decision brings fears the Fed is failing to keep paceUS government borrowing costs have hit their highest level since 2007 after the Federal Reserve voted to hold its key interest rate steady, feeding fears that the central bank may not move fast enough to tame a rise in inflation.The yield – or interest rate – on the 30-year US Treasury bond rose 14 basis points to nearly 5.24%, a 19-year high, after the Fed announced its decision to hold its main rate at between 3.5% and 3.75% for the fifth meeting in a row. Continue reading...

• Eurozone borrowing costs have increased due to a combination of escalating tensions in the Middle East and expectations of a hawkish Federal Reserve. • The rise in yields reflects growing market volatility as investors react to geopolitical instability and the potential for prolonged high interest rates in the U.S. • This trend matters as it increases the cost of debt for European governments and could pressure economic growth across the region.

• Eurozone borrowing costs have increased due to a combination of escalating tensions in the Middle East and market expectations of a hawkish Federal Reserve. • The rise in yields reflects growing investor anxiety over geopolitical instability and the potential for prolonged high interest rates in the U.S. • This trend matters as it increases the cost of debt for European governments and could pressure economic growth across the region.

• Euro zone bond yields have increased, with German 10-year bonds reaching 3.13% in July. • This rise has narrowed the borrowing gap between German bonds and US Treasuries to its lowest level in one month. • The shift in yields is occurring against a backdrop of volatile conditions in the Gulf region, impacting global market stability.