September 9, 2024
United States:
Treasuries Slip With Traders Divided on Pace of Fed Rate Cuts
Treasuries fell as traders looked to US inflation data later this week for further clues on how much the Federal Reserve will cut interest rates this year.
Yields on two-year notes — among the most sensitive to changes in the outlook for policy — rose as much as six basis points to 3.71%, while those on 10-year bonds climbed as much as five basis points to 3.76%. Traders pared the chance of a half-point rate reduction at the Fed’s upcoming September meeting to about 20% from as high as 50% last week.
Europe:
ECB’s Economic Hopes at Risk as Consumers Put Spending on Ice
Euro-zone consumers aren’t rushing to open their wallets — prompting some to ask whether the economic recovery they were supposed to spearhead will ever arrive.
Growth in the 20-nation bloc, having outperformed in the first half of the year, is stumbling. Manufacturing remains in the doldrums, households are failing to take up the slack and sentiment is languishing below pre-pandemic levels.
Asia:
China’s Deflationary Spiral Is Now Entering Dangerous New Stage
Deflation stalking China since last year is now showing signs of spiraling, threatening to worsen the outlook for the world’s second-largest economy and raising calls for immediate policy action.
Data released Monday confirmed that apart from food costs, consumer price growth barely registered in large swathes of the economy at a time when incomes are sagging.
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