Written by Mike Dolan
LONDON (Reuters) – What matters in the United States and global markets today
Written by Mike Dolan, editor, man, financial industry and financial markets
The bond markets are again after the hammer fell on a lukewarm sale to the US Treasury for 20 years on Wednesday with the Buser of President Donald Trump and its spending to remove a decisive obstacle overnight.
In today’s column, I discuss how the long -term trend of American companies as two net loans rich in money may be reflected due to an increase in Amnesty International and the restoration of industry, which may create new competition for funds with constantly expanded US government borrowing.
But now on all market news.
Market accurate today
* The US draft tax law and spending, on tax and spending tax on a decisive obstacle on Thursday, where the House of Representatives voted almost along the party lines to start a discussion that would lead to a traffic vote later in the morning.
* Foreign investors can barely imagine that China will invade Taiwan, but with Donald Trump as President of the United States, many view this as an at risk scenario that they should prepare, although they cannot find ways to do so.
* The US stocks and the US dollar fell on Thursday, while the treasury revenues that were long ago leaks near their highest levels in 18 months as a disturbance of the increasing financial expectations in the world’s largest economy at the top of investor minds.
* Bitcoin rose to its highest level ever on Wednesday, as it crashed from the highest level of January, with risk morale continued to improve after the sales caused by customs tariffs last month.
* Oil prices fell by more than 1 % on Thursday after a report stating that Opec+ discusses the increase in production for the month of July, which raises fears any possible increase in the global supply will exceed demand growth.
* Solar energy farms have been appointed to record control of the energy sector in Germany after they became the largest source of the country in the country at the closest point of the year.
The hammer comes
The markets are afraid that the bill will bake from the high deficit and the height of debt piles over the period of the administration’s term at least. The proposed legislation raises Jabal Al -Dion of $ 36.2 trillion at another $ 3.8 trillion over the next decade, according to the non -partisan Congress budget office.
The legislators were to vote again to pass the procedure later today and send it to the Republican Senate, which could take weeks to act. It is not yet clear whether parliament Speaker Mike Johnson will secure the necessary support from the narrow republican majority 220-212.
But the bond markets are getting richer, as the poor auction has been offered for 20 years. The return in the United States for 30 years reached 5.108 %, the highest level since October 2023, and the revenue for 20 years is 5.126 %, the highest level since November 2023.
The Bond Long is now 30 years old now 7 basis points from 2023 peaks. A lounge above will put it at its highest levels since its banking crash in 2007 – a shock that forced the federal reserve to spend years supporting the purchase of bonds.
The troubles of the Treasury Market in the government bond markets have been reflected in all parts of the world, as Japan is still struggling with very long returns to record levels and Britain’s return for 30 years, reaching its highest levels since April fluctuations.
The Board of Directors of the Bank of Japan, Asai Nougchii, said on Thursday that the Central Bank is not needed to intervene in the bond market to save a sharp rise in the long long revenues, describing the moves as “fast but not abnormal.”
Rotated by strict inflation readings and concerns related to tariffs, debts are also anxious of non -full stock markets. Wall Street’s stock indicators fell more than 1 % on Wednesday and the markets in Asia and Europe were lower earlier today.
There was some comfort of crude oil prices. The American standard declined by 1 % after a report stating that Opec+ discusses increased production for the month of July, which led to speculation that the global supply may exceed demand growth.
The dollar got a modest elevator in the meantime, as the G7 Finance Chiefs signs in Canada suggested that Washington had hindered the demand for the top of the yen in bilateral trade talks with Japan, as some speculation before the expression was anxious.
US Treasury Secretary Scott Beesen and Japanese Finance Minister Katsonobo Kato issued a statement on Wednesday that the charming dollar exchange rate currently reflects the basics, a rare and frank statement on the prevailing market situation.
The Ministry of Treasury said in a statement that Bessent and Kato “reaffirmed their joint belief that exchange rates must be determined in the market and that the dollar exchange rate at the present time reflects the basics.”
The statement also said somewhat that they did not discuss foreign exchange levels.
On Wednesday, South Korea won sharply against the dollar after a media report that Washington asked Seoul to reach measures to strengthen the victory as part of any trade deal. The victory over most of these gains was abandoned today.
Elsewhere, the interest in business surveys around the world was for the month of May. The readings of the euro area and Japanese companies showed an unexpected activity there due to the shrinkage mode this month, due to a large extent to a new weakness among the services sector companies.
The United States’ rewards are scheduled to be later, along with weekly unemployment numbers.
Make sure to review today’s column, which is looking for potential grumbling in the US government debt markets from the perspective of local American companies to move forward.
Today’s scheme
The US Treasury’s revenues increased long ago again after selling $ 16 billion from 20 -year bonds on Wednesday, requesting investors from investors just as Congress crushed the details of Donald Trump’s financial bill.
With long -term debt revenue high worldwide, investors are concerned about the escalation of disability, debt piles and tariff inflation risk.
The estimation of the Federal Reserves in New York for a period of 10 years-investors demand compensation for a 10-year debt on maturity instead of just overcoming short-term securities-close to their highest levels for more than a decade and nearly average twice for 20 years.
Today’s events to watch
* UNRWA (0830edt), Flash may make manufacturing polls from S& Pglobal (0945edt), Kansas City Federal Reserve May Survey (1100edt), current homes sales in April (1000DEDT); Canada products prices April (0830edt)
* The US Treasury Department sells protected securities for 10 years
* G7 financial ministers and bankers concentrated in Panf in Alberta, Canada
* New York Federal Reserve Chairman John Williams and Richmond President at the Federal Reserve Thomas Parkin talking; European Central Bank Vice President Lewis de Gindos speaks; The chief economist in England Huo Bell speaks
* American companies profits: analog, autoodesk, Copart, Deckers, Intuit, Ralph Lauren, Ross, Workday
The views expressed are the views of the author. It does not reflect the opinions of Reuters news, which, according to the principles of confidence, is committed to integrity, independence and liberation from bias.
(Written by Mike Dolan; Edit by Gareth Jones)
