October 5, 2023
United States:
Fed’s Bid to Avoid Recession Tested by Yields Nearing 20-Year Highs
The Federal Reserve may be putting its hoped-for soft landing of the economy at risk by tacitly accepting a run-up in long-term interest rates to the highest levels since 2007.
The surge — 10-year Treasury yields rose more than half a percentage point the past month to surpass 4.7% — heightens the danger in the near-term of a financial blowup akin to the regional bank breakdown in March. Longer run, it threatens to undercut the economy by markedly raising borrowing costs for consumers and companies.
Europe:
ECB’s Kazimir ‘Strongly Believes’ Interest Rates Hikes Are Over
European Central Bank Governing Council member Peter Kazimir reiterated that he hopes interest-rate increases have finished following September’s 10th straight move.
“I strongly believe that our rate hike at the last meeting was the last one,” the Slovak official told reporters Thursday in Bratislava. “We’ll need to wait for the December and March forecasts. Only real data can persuade us that we’re at the peak. Only then can we start to focus on other monetary-policy tools.”
Asia:
Hong Kong to Pause Selling Commercial Land as Market Falters
Hong Kong’s government will refrain from selling commercial sites in land tenders this quarter as the office market continues to suffer from high vacancy rates.
“It’s reasonable for us to pause” on the sale of commercial plots in the fiscal third quarter ending Dec. 31, Secretary for Development Bernadette Linn told reporters on Wednesday. “We see that the vacancy for commercial space is on average at 10% or more.”
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