February 25, 2025
United States:
US 10-Year Yield Hits 2025 Low as Traders Boost Rate-Cut Bets
Treasuries rallied as traders boosted bets on Federal Reserve interest-rate cuts, with US President Donald Trump’s tariff plans weighing on risk appetite.
Yields on 10-year US bonds fell as much as seven basis points to 4.33%, the lowest level in over two months.
Europe:
Euro-Zone Wage Growth Cools From Record, Backing ECB Cuts
A key measure of euro-area pay growth eased at the end of 2024, supporting European Central Bank plans to keep cutting interest rates as inflation slows.
Fourth quarter negotiated wages rose by 4.1% from a year ago, the ECB said Tuesday. That’s down from the 5.4% record seen in the prior three months.
Asia:
China’s Repo Market Hit Hard as Yuan Defense Sparks Cash Squeeze
China’s strategy of defending its currency by choking local liquidity is sending ripples throughout the financial system, squeezing banks and fueling losses at bond funds.
The People’s Bank of China has drained cash through open market operations most days this month, supporting the yuan by making it more scarce.
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