Treasury Yields Wobble as Fed Reaffirms Its Data Dependence -- Market Talk
U.S. stock market outlook | All three Equity Index futures are up, and the Federal Reserve's interest rate decision is imminent.
On May 7th (Wednesday), in Pre-Market Trading, the three major U.S. equity index futures all rose.
What caused the rapid reversal of the latest sell-off in the USA? Deutsche Bank: The main reasons are policy easing and the economy not entering recession.
Deutsche Bank stated that this round of market reversal is mainly attributed to three points: macroeconomic data shows that the USA economy has not fallen into recession; the decline in oil prices has alleviated inflationary pressures, providing room for potential interest rate cuts. Finally, the policies of the USA government have softened, and the tendency for trade protectionism has weakened.
U.S. stock valuations have reached warning levels again! The market is treading carefully before the Federal Reserve's decision.
The recent rebound in the stock market has caused valuation levels to rise again, and with the Federal Reserve about to announce its MMF policy decision, the market cannot afford any mistakes.
Markets Rattled As Trump Tariffs Overshadow Fed Calm
Bescent warns that the USA is at a "warning line" for debt, but still insists it will not fall into default.
① The U.S. Treasury Secretary Bentsen warned again on Tuesday in response to questions from the House of Representatives that the U.S. Treasury is at the "red line," close to exhausting its ability to stay within the federal debt ceiling; ② However, Bentsen assured once again that the U.S. government would never default on its debt and promised that the Treasury would not use "tricks" to circumvent the debt ceiling.
USA stock market: S&P 500 Index has fallen for two consecutive days, with risk aversion dominating Wall Street on the eve of the Federal Reserve's interest rate decision.
On the eve of the Federal Reserve's interest rate decision, risk aversion dominated Wall Street, leading to a decline in the US stock market. Comments on trade policy by US President Donald Trump failed to alleviate concerns about the economic damage that the trade war could cause.
The USA Treasury's 10-year bond auction was strong, with robust overseas investment demand.
Compared to the almost "zero liquidity" tension during the last 10-year U.S. Treasury auction, the market is clearly much calmer this time. After the auction results were released, U.S. Treasury yields fell sharply. Michael Faulkender, Deputy Secretary of the U.S. Treasury, stated that today's 10-year U.S. Treasury auction was very successful.
Beijing Century claims that the USA is in a "warning stage" regarding the debt ceiling, and the US government will never default.
On Tuesday, the USA Treasury Secretary Yellen reiterated that the USA Treasury is on a "warning track", nearing the limit of its ability to remain within the federal debt ceiling, but he did not provide a specific timeline.
Treasury Yields Fall Ahead of Another Expected Fed Hold -- Market Talk
Daily Roundup of Key US Economic Data for May 6
SA Sentiment Echoes Current Fed Outlook Despite Rate Cut Pressure
The USA's trade deficit reached a record high in March! Companies are rushing to import wildly before the tariffs are implemented.
Due to the Trump administration's imminent implementation of a comprehensive tariff policy, companies rushed to import commodities in advance, leading to a historic record in the U.S. trade deficit in March.
Treasury Yields, Dollar Fall Amid Widening U.S. Trade Deficit -- Market Talk
Treasury Yields Hold Steady as Investors Await Fed's Policy Meeting
Gilt Yields Rise, Tracking Moves in Treasurys Ahead of Fed Decision -- Market Talk
Federal Reserve Still to Assess Tariff Impacts -- Market Talk
Deutsche Bank: The sell-off of USA Assets has been excessive.
Deutsche Bank pointed out that at the beginning of April, the USA market experienced significant volatility, but the panic regarding the dollar, USA Consumer data, and overall confidence in USA Assets may be exaggerated. From a relative valuation perspective, some cyclical USA Consumer stocks may begin to show investment attractiveness. Although policy volatility may persist, the narrative of "selling dollar Assets" may have reached its peak.
The New Taiwan dollar has surged, life insurance has become a major risk, and there is a large-scale mismatch of dollar Assets.
The life insurance industry in Taiwan, China, has long invested a large amount of Assets in US Bonds, and in order to maintain the yield, it only partially hedges its continuously expanding Forex risk exposure, effectively betting its solvency on the New Taiwan Dollar remaining weak against the US Dollar. As the New Taiwan Dollar surges, life insurance companies in Taiwan, China, are rushed to reduce or hedge their dollar exposure.
The "Big Four" mass layoffs in the USA.
Against the backdrop of slowing growth in the consulting Business, PwC laid off 1,500 employees in the USA. This is to address the historically high employee turnover rate, while low turnover has exacerbated the financial pressures faced by the Big Four accounting firms.