October 23, 2023
United States:
Treasury 10-Year Yield Breaches 5% for First Time Since 2007
The 10-year Treasury yield crossed 5% for the first time in 16 years, propelled by expectations the Federal Reserve will maintain elevated interest rates and that the government will further boost bond sales to cover widening deficits.
The yield rose as much as 11 basis points to 5.02%, the highest since 2007. Fed Chair Jerome Powell suggested last week that central bankers are inclined to hold rates steady at their November meeting, but remain open to hiking again if a resilient economy fans inflation risks.
Europe:
ECB’s €5 Trillion Problem Forces a Rethink of How Policy Is Run
European Central Bank officials weighing whether they’ve raised borrowing costs far enough are confronting a related challenge: how to ensure their policy continues to work.
President Christine Lagarde and her colleagues are looking to revamp the plumbing that connects the ECB with banks, 15 years since the collapse of Lehman Brothers marked the dawn of an era of unconventional liquidity tools — and ultimately quantitative easing.
Asia:
China Plans Twice-a-Decade Financial Policy Conference Next Week
China plans to convene a key financial policy gathering which takes place once every five years early next week to prevent risks and set medium-term priorities for the $61 trillion industry, according to people familiar with the matter.
State leaders, regulators and top bankers will gather at the closed-door national financial work conference in Beijing on Oct. 30-Oct. 31, said the people, asking not to be identified discussing a private matter. Officials led by President Xi Jinping are poised to focus on resolving financial risks, including the property crisis and the spiraling debt at local government financing vehicles, said the people.
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