March 10, 2025
United States:
US Credit Risk Rises as Tariffs, Job Cuts Stoke Recession Fears
US gauges are showing their highest levels of credit risk this year Monday morning, as investors exhibit fresh concern about the state of the country’s economy in light of tariffs and cuts to the federal workforce.
As numerous investment-grade borrowers are poised to opt against issuing bonds Monday, the Markit CDX North American Investment Grade Index widened as much as 2.06 basis points to 53.54 — another 2025 high.
Europe:
ECB Needs to Keep Open Mind on Its Next Rate Steps, Kazimir Says
The European Central Bank needs to have an open mind on its next steps as it confronts persisting inflation risks, according to Governing Council member Peter Kazimir.
“Over the coming weeks, we must carefully assess all the incoming data and complement what we learn with cautious judgment,” the Slovakian central bank chief said Monday, adding that this flexibility means “keeping all options open, whether we decide to cut again or pause.”
Asia:
Japan 10-Year Yield at Highest Since 2008 on Bets for BOJ Hikes
Japan’s benchmark 10-year government bond yield rose to its highest since 2008 on Monday, at a time when Treasury yields ticked lower again, underscoring expectations that the Bank of Japan will keep hiking interest rates.
The yield climbed to a high of 1.575% as data on base pay showed the fastest gain in more three decades, supporting a path of continued gradual hikes from the BOJ.
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