Market News

Markets recovered as US Treasury yields paused after their recent rise to multi-year highs. Although the increase in yields moderated, the 10-year Treasury yield was little changed by the end of the session.…

In Japan, the 10-year Japanese Government Bond (JGB) yield increased by more than 6 basis points to 3%, reaching this level for the first time since 1996. The two-year JGB yield also climbed to a 31-year high…

Market attention has shifted back to the Middle East, where the geopolitical situation has flared up once again. Specifically, US forces struck two Iranian missile launchers on Larak Island, marking a…

The USD strengthened sharply by more than 0.60%, climbing to 99.72 points, while the 10-year US Treasury yield surged 5.5 basis points to 4.728%, following a speech by Fed Chair Kevin Warsh at the Jackson Hole symposium.

Oil prices and the US dollar extended their gains in the latest session, as markets turned their attention back to the Middle East. Washington confirmed the US is not holding talks with Iran, despite diplomatic efforts from other nations, raising concerns that uncertainty surrounding regional oil supplies could persist.

The market's focus yesterday was on the US PCE inflation report, with the Fed's preferred inflation gauge rising more than expected in July.

Trading was relatively subdued yesterday in the absence of major economic data. Instead, investor attention turned back to the Middle East, where geopolitical developments continued to intensify.

Markets traded largely sideways on Friday but still closed out a week marked by notable volatility. Specifically, this came right after the US bond market sell-off starting on August 18. The very next day, August 19, the US Treasury Department announced a plan to more than double the size of its government bond buyback operations, a move aimed at cooling the bond market, which caused yields to fall sharply.

A sharp reversal across global markets followed the previous session's Treasury selloff. On Wednesday, the US Treasury announced that it would more than double the size of its government bond buyback operations, triggering a rapid repricing across rates and the dollar.