US, Ukraine Talks Resume Early Next Week
"Balance of Power" focuses on the intersection of politics and global business. On today's show, Dr. Rebecca Grant, Vice President of Defense Programs at the Lexington Institute, discusses Boeing winning a multi-billion dollar contract to design and build the next-generation fighter jet and states this new fighter jet should be able to prevent a war with China. Jane Harman, Former Chair of the Commissioner on National Defense Strategy, discusses what she expects Ukraine and the United States to speak about as the two countries are set to talk with one another early next week. (Source: Bloomberg)
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(Bloomberg) — After weeks of hand-wringing around demand for long-term US debt, all eyes are on Thursday's 30-year Treasury (^TYX) auction for a fresh read on whether spiraling deficits are causing investors to shun the maturity. Shuttered NY College Has Alumni Fighting Over Its Future Trump's Military Parade Has Washington Bracing for Tanks and Weaponry NYC Renters Brace for Price Hikes After Broker-Fee Ban NY Long Island Rail Service Resumes After Grand Central Fire Do World's Fairs Still Matter? The $22 billion sale, scheduled for 1 p.m. New York time, is part of the government's regularly scheduled borrowings. Yet it will take place as Congress considers President Donald Trump's massive tax bill, which by some projections will add trillions of dollars to US budget gaps, potentially requiring more bond issuance to finance the spending. 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The figures spurred gains in Treasuries that were led by shorter maturities as traders boosted bets on Federal Reserve interest-rate cuts this year. Strong buying at a 10-year Treasury (^TNX) auction helped fuel the advance. However, inflation remains above the Fed's 2% target, and policymakers have signaled that they're waiting to see how much tariffs lift consumer inflation before they ease rates further. The long bond is particularly vulnerable to the threat of resurgent price pressures. Amid all these risks, bond managers including DoubleLine Capital and Pacific Investment Management Co, have favored owning Treasuries with 10 or fewer years to maturity, while allocating less to the long end. This week, Pimco reiterated that it's staying underweight long-maturity debt over the next half-decade, while DoubleLine's Jeffrey Gundlach said long-term Treasuries are no longer seen as legitimate risk-free investments. 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