January 13, 2025
United States:
Treasuries Selloff Ripples Through World Markets After Jobs Data
Treasuries fell as traders scaled back bets on Federal Reserve interest-rate cuts following Friday’s blowout US employment report.
Yields on benchmark 10-year bonds rose as much as four basis points on Monday to 4.80%, the highest level since November 2023.
Europe:
More ECB Cuts Needed Irrespective of Fed Moves, Rehn Says
The European Central Bank should continue lowering borrowing costs irrespective of what the US Federal Reserve does, according to Governing Council member Olli Rehn.
“Against the backdrop of disinflation being on track and the growth outlook having weakened it makes sense to continue rate cuts,” the Finnish official told Bloomberg TV. “The direction is clear; the scale and speed of rate cuts depends upon the incoming data.”
Asia:
China Policy Focus to Shift More to Consumption, PBOC’s Pan Says
China will promote the role of consumption in the economy and move away from its sole focus on investment, according to the central bank governor, ushering in a shift in the growth model that’s come to define the country over the past two decades.
“The priority of macroeconomic policy should shift from promoting more investment in the past, to promoting both consumption and investment, with more importance attached to consumption,” Pan Gongsheng said in a speech at the Asian Financial Forum in Hong Kong.
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