June 2, 2025
United States:
Treasuries Fall as Tariff Uncertainty Clouds Outlook Before Data
Treasuries fell amid a broad selloff of US assets as uncertainty over President Donald Trump’s tariff policy continued to swirl at the start of a busy week for data on the health of the world’s largest economy.
Longer bond maturities led the drop, driving the yield on 10-year debt up four basis points to 4.44%.
Europe:
ECB Set for Last Easy Rate Cut as Trade Fuels Inflation Discord
The European Central Bank is about to lower interest rates for the final time before an increasingly complicated inflation outlook risks bringing internal divisions to the fore.
As price risks recede, officials have cut seven times in the last year with little friction on the 26-strong Governing Council. An eighth move is expected Thursday, bringing the deposit rate to 2%.
Asia:
Japan’s Fragile Debt Market Faces Two Auction Hurdles This Week
Japan’s bond market faces more challenges with debt sales on Tuesday and Thursday that may ramp up pressure on the government to adjust its borrowing plans and calm investor nerves.
Hot on the heels of auctions last month that exposed a lack of demand, the finance ministry will sell ¥2.6 trillion ($18 billion) of 10-year notes tomorrow and ¥800 billion of 30-year bonds two days later.
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