September 22, 2023
United States:
Another Yield High as US 10-Year Jumps Above Key 4.5% Level in Post-Fed Bond Rout
Treasury 10-year yields rose above 4.5% for the first time since 2007 as a more hawkish Federal Reserve adds to concern the bonds face a toxic mix of large US fiscal deficits and persistent inflation.
US government debt is headed for a third year of losses as bets on a rapid Fed pivot from aggressive interest rate hikes evaporate again after the central bank on Wednesday raised its projections for future borrowing costs.
Europe:
Weak Euro-Area PMI Data Suggest Economy Facing Contraction
Private-sector activity in the euro area has continued to shrink in September, suggesting the economy contracted in the current quarter.
An index based on surveys of purchasing managers by S&P Global showed a fourth consecutive month of falling output, hitting 47.1. While that’s a slight improvement on August, the reading is clearly below the 50 level that indicates contraction. Economists had predicted a drop to 46.5.
Asia:
China Mulls Easing Foreign Stake Limits to Lure Global Funds
China is considering relaxing the rules that cap foreign ownership in domestic publicly traded firms, people familiar with the matter said, as it seeks to lure global funds back to its $9.4 trillion stock market.
Authorities are pondering policy tweaks to boost overseas ownership in stocks listed in Shanghai, Shenzhen and Beijing as part of a push to open up the market and boost trading, the people said, asking not to be identified as the information is private. China currently caps total foreign ownership in locally listed firms at 30%, and subjects a single foreign shareholder to a 10% limit.
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