October 28, 2024
United States:
Next Hurdle for Treasuries Is Whether US Keeps Debt Sales Stable
With its confidence in future interest-rate cuts shaken by US economic resilience, the Treasuries market is also facing doubts about how much longer the US government can avoid ramping up its borrowing.
Even as the US continues to clock historically large fiscal deficits, the Treasury Department since May has issued guidance that it will hold note and bond auction sizes as-is “for at least the next several quarters.” The next so-called quarterly refunding announcement is due Wednesday.
Europe:
ECB Communications Are Getting Messy as Rate Cuts Advance
So far, European Central Bank officials have mostly succeeded in steering the euro-zone economy toward 2% inflation with a single voice. But as they circle in on their target, views on what to do when are set to diverge.
Points of friction were already evident last week in Washington, where policymakers gathered to discuss the state of the world economy and the challenges that might arise.
Asia:
Japan’s Ishiba Vows to Bring Stability After Losing Majority
Japanese Prime Minister Shigeru Ishiba promised Monday to restore political stability in a bid to maintain power, after his ruling coalition failed to win a majority in the lower house for the first time since 2009.
“We have to humbly listen to the voices of criticism,” Ishiba, who took the job only four weeks ago after winning a leadership vote in his Liberal Democratic Party, said at a press briefing in Tokyo.
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