Overseas Headlines – October 07, 2024

October 07, 2024

United States:

Key US Yields Hit 4% for First Time Since August on Fed Rethink

Key US Treasury yields are back at 4%, a level last seen in August, as a blowout jobs report undercut chances for another big interest-rate reduction from the Federal Reserve.

Bonds dropped Monday, extending a plunge late last week following surprisingly robust September payrolls data. The 10-year yield rose as much as four basis points to 4.01%, while the two-year yield was up nine basis points to the same level.

https://www.bloomberg.com/news/articles/2024-10-07/key-us-yields-near-4-for-first-time-since-august-on-fed-rethink?srnd=phx-economics-v2

 

Europe:

ECB Will ‘Quite Probably’ Cut Rates This Month, Villeroy Says

The European Central Bank will “quite probably” cut interest rates at its next meeting later this month, according to Governing Council member Francois Villeroy de Galhau.

Inflation fell below the ECB’S 2% target in September and the core measure of price increases should gradually recede close to that level in 2025, the Bank of France chief said in an interview with La Repubblica.

https://www.bloomberg.com/news/articles/2024-10-06/ecb-will-quite-probably-cut-rates-this-month-villeroy-says?srnd=phx-economics-v2

Asia:

BOJ Signals It Remains on Rate Hike Path With Regional Report

The Bank of Japan indicated it remains on track to consider more interest rate hikes by upgrading its assessments for two regional economies, while also offering little evidence of any need for immediate action.

The BOJ raised it economic assessments for the Hokuriku and Tokai regions in its quarterly regional report Monday. In a separate release summarizing the views of branch managers who met to discuss the report, the bank said many reported widening perceptions among business leaders that wages need to keep rising next year.

https://www.bloomberg.com/news/articles/2024-10-07/boj-signals-it-remains-on-rate-hike-path-with-regional-report?srnd=phx-economics-v2

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