Latest news with #Treasuries
Yahoo
16 hours ago
- Business
- Yahoo
US Treasuries Steady as Inflation Reading Offers Few Surprises
(Bloomberg) -- US Treasuries held steady after fresh readings on inflation and jobless claims were broadly in-line with expectations, offering little evidence for the Federal Reserve's next move. The World's Data Center Capital Has Residents Surrounded An Abandoned Art-Deco Landmark in Buffalo Awaits Revival Budapest's Most Historic Site Gets a Controversial Rebuild We Should All Be Biking Along the Beach San Francisco in Talks With Vanderbilt for Downtown Campus Yields were one to two basis points lower across tenors Thursday morning in New York, with the benchmark 10 year trading at 4.35%. The core personal consumption expenditures price index, which excludes food and energy items, rose 0.3% in June from the month prior, matching economist estimates. The gauge is considered the Fed's preferred measure of evaluating underlying inflation. A separate report on weekly initial applications for unemployment insurance was little changed. 'It's all so close to expectations, I'm not sure this is really going to change the narrative a whole lot,' said Jonathan Pingle, chief US economist at UBS, on Bloomberg TV. Earlier in the session, Treasuries clawed back some of the losses suffered Wednesday after the central bank held rates steady and Fed Chair Jerome Powell indicated that he may keep investors waiting for the first reduction in borrowing costs this year. Money markets slashed wagers on rate cuts this year and now only see a 36% chance of a reduction in September. Powell, speaking after the decision, urged patience in the face of a still-strong labor market and above-target inflation. 'We expected the FOMC meeting outcome to be hawkish, and Chair Powell did not disappoint,' Anshul Pradhan, head of US rates strategy at Barclays, wrote in a note with colleagues. The bank has argued 'for some time' that the market should put more weight on a later start for cuts and expects a move only in December. The US two-year yield — which is most sensitive to changes in monetary policy — has climbed more than 20 basis points through July. It was little changed on Thursday. While US President Donald Trump has repeatedly urged the Fed to lower borrowing costs, Powell has resisted pressure to do so given the labor market is in good shape and inflation remains above target. Long-term US inflation expectations, measured by swaps, have drifted about 20 basis points higher since April to 2.50%. The impact of higher US tariffs, with many trade deals only being struck this week, remains highly uncertain. Economic data implies companies are beginning to more meaningfully pass on some tariff-related costs to consumers, while Powell said Wednesday that the Fed was 'a bit looking through goods inflation by not raising rates.' Justin Onuekwusi, chief investment officer at St. James's Place in London, last week added exposure to Treasury Inflation-Protected Securities, or TIPS, to buffer his portfolios against an unexpected spike in prices. 'We feel tariffs are short-term inflationary, long-term deflationary, but understanding the shape of inflation is very difficult in this environment,' he said in an interview. --With assistance from Sujata Rao. Russia Builds a New Web Around Kremlin's Handpicked Super App Burning Man Is Burning Through Cash Everyone Loves to Hate Wind Power. Scotland Found a Way to Make It Pay Off It's Not Just Tokyo and Kyoto: Tourists Descend on Rural Japan Cage-Free Eggs Are Booming in the US, Despite Cost and Trump's Efforts ©2025 Bloomberg L.P. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Bloomberg
20 hours ago
- Business
- Bloomberg
US Bond Traders Eye Inflation for Steer on September Rate Cut
US bond traders will scour inflation data due Thursday for signs of persistent price pressures that could encourage the Federal Reserve to keep borrowing costs higher for longer. Treasuries clawed back some of the losses suffered Wednesday after the central bank held rates steady and Fed Chair Jerome Powell indicated that he may keep investors waiting for the first reduction in borrowing costs this year. Money markets slashed wagers on a September rate cut to 40% from 80%.
Business Recorder
a day ago
- Business
- Business Recorder
Tariff truce or trade shock?
The tariff-truce clock is ticking – and global markets are grinding their teeth. In less than two weeks, President Trump will decide whether to extend the temporary pause on China tariffs, and that call alone may dictate the trajectory of trade flows, capital markets, and even whether a Trump-Xi summit materialises later this year. For now, the financial world is suspended in a strange mix of anticipation and denial. The so-called 'Liberation Day' tariffs, announced earlier this year, triggered the kind of global panic not seen since the peak of Covid-era disruptions. Then came a rebound, timed perfectly with a temporary pause. Now the same pattern looms again. Trump threatens. Markets tremble. Then retreat follows. But this time, the bluff may be harder to sustain. The Stockholm talks last week produced the first formal signal of an agreed extension, at least from the Chinese side. Beijing's trade negotiator declared the pause was being prolonged, but the US Treasury delegation quickly qualified the statement, insisting that nothing is final until President Trump signs off. In this administration, that's more than a legal formality, it's a policy variable. The deadline is August 12. If Trump grants another 90 days, it clears the path for a face-to-face meeting with Xi later in the year. If he doesn't, then the 15-30 percent tariffs on Chinese goods — already baked into much of this year's volatility – will return with a vengeance. That, in turn, will force China to respond, and nobody will pretend to be surprised when global equity indices nosedive. It's no exaggeration to say that financial markets have turned the entire tariff negotiation process into a short-term trading framework. Some call it the TACO trade – Trump Always Chickens Out. Risk-on during threats. Risk-off if he follows through. A dangerous game of geopolitical positioning turned into a cyclical investment strategy. This time, though, the stakes are different. China, the second-largest economy in the world, is facing sharper economic deceleration than expected. It needs export access. Its rare earth exports have started recovering. Semiconductor controls have been relaxed. Even Taiwan friction has been managed more cautiously. Beijing is clearly setting the stage for concessions. And yet, Trump has the final call and markets know it only too well. That's why nobody's surprised they're showing early signs of strain. The S&P 500's six-day rally broke just as doubts surfaced about the extension's certainty. Treasuries caught a safe-haven bid. Asian currencies slipped. Trade-exposed stocks led decliners. It's not outright panic, but it's not comfort either. The irony is that even a successful summit – if it happens – won't by itself resolve the underlying problems. These are two economic superpowers now locked into a longer-term rivalry over everything from AI chips to defence supply chains. What matters in the next few days isn't whether the truce is extended, but whether it signals even the possibility of a more stable framework. Investors aren't betting on peace; they're betting on visibility. The IMF's modest upgrade of global growth forecasts rests on this very hope. Stronger-than-expected performance from the US, partial stabilisation in China, and easing supply shocks have combined to raise optimism. But every projection now includes footnotes about 'tariff uncertainty' and 'geopolitical risk.' If the pause holds, global equities might keep their ground. If it breaks, a broad repricing is likely. Also worth watching is how other economies position themselves. Japan and the EU have already rushed to cut their own tariff deals with Washington ahead of Trump's deadline. These are not long-term realignments; they are tactical evasions. Countries are adjusting their export routes and trade portfolios to navigate an unpredictable tariff regime that is both the product and driver of volatility. Over the next ten days, diplomacy and risk will run in parallel. The US wants guarantees on rare earths and advanced materials. China wants assurance that it won't face arbitrary new penalties. Both sides are posturing for leverage while leaving enough room to backtrack. Whether or not the extension is granted, the moment will be defining. If Trump signs, it reinforces a fragile detente, one that keeps the global economy on edge but operational. If he doesn't, and the market sees no roadmap forward, expect sharper dislocations. A short-term deal may provide relief, but without architecture, volatility is guaranteed to return. If the summit materialises, it will carry weight by default. But its value will depend on whether it produces a credible framework for navigating trade and strategic rivalry, or merely papers over deep differences. Financial markets, long attuned to theatrics, will be watching for substance – any signal that the world's two largest economies can manage competition without destabilising the global system. This is what makes the coming fortnight so important. There's a clear inflection point forming – not because the world wants it, but because the two largest economies are once again dragging it there. The cost of escalation is high. The cost of uncertainty, arguably higher. And the market, after all, is not waiting for slogans. It's waiting for signals. Copyright Business Recorder, 2025
Yahoo
2 days ago
- Business
- Yahoo
What are yield coins? Yield bearing assets explained
What are yield coins? Yield bearing assets explained originally appeared on TheStreet. Tokenization isn't just for stablecoins. Ian De Bode, chief strategy officer at Ondo Finance, coined the term 'yield coins' to describe tokenized treasury funds that pay daily yield. In an interview with TheStreet Roundtable, De Bode explained that while stablecoins tokenize cash for global 24‑7 access, they typically don't pay out interest and have uneven investor protections. Yield coins address that gap by combining safety with automatic yield are yield coins? 'Yield coins is a term that we coined for any tokenized treasury fund,' De Bode said. Two of Ondo's flagship yield coins are OUSG and USDY. OUSG is a 3(c)(7) fund offered to qualifying purchasers and accredited investors worldwide. Investors onboard via a simple KYC process, deposit stablecoins and mint OUSG tokens 24‑7. Each token represents a share in U.S. Treasuries held in reserve and can transfer peer‑to‑peer among approved wallets. USDY is a continuous‑registration fund for non‑US investors. It behaves more like a stablecoin — quasi‑permissionless on secondary markets — yet automatically reinvests its yield into more Treasury holdings. Both products let users 'park their cash on‑chain and still earn yield on it on a daily basis,' De Bode noted, while maintaining industry‑leading reserve disclosures and legal yield coins work Traditional Treasuries run on financial rails with cut-off times: if you miss the daily window, you forfeit that day's interest. Yield coins operate on blockchain rails, so subscriptions settle instantly and begin accruing yield the moment tokens mint. De Bode explained, 'You can subscribe to our funds 24‑7 via stablecoins on chain the moment the subscription hits, which is instantly on crypto rails.' Once minted, yield coins can engage with decentralized finance. Investors may use OUSG or USDY as collateral for repo transactions or margin loans over weekends — capabilities unavailable to on‑chain holders of traditional Treasuries. Yield coins derive their yield by investing deposits into underlying Treasury instruments and tokenized Treasury funds — such as BlackRock's BUIDL fund and Franklin Templeton's Benji fund — and reinvesting the interest back into reserves. Currently, OUSG yields about 4.1% and USDY about 4.29%. Balancing stablecoins and yield coins De Bode likened the relationship between stablecoins and yield coins to checking versus savings accounts. Stablecoins remain the primary liquidity pairs in crypto trading, offering instant on‑ramps and off‑ramps without yield. Yield coins, by contrast, serve as a savings vehicle — letting users earn the risk‑free rate on‑chain until they need liquidity again. He advised that investors choose instruments based on need: 'It sometimes is still helpful to just have cash lying around that you can very easily send to other individuals without necessarily having to earn interest on it.' Getting started with yield coins OUSG requires accredited or qualified‑purchaser status while USDY is open to non‑US investors. Onboarding involves a brief compliance check, after which users can mint or burn tokens via stablecoins or traditional wires. By tokenizing Treasuries with built‑in yield and robust investor protections, yield coins offer a simple, flexible way to earn interest and access DeFi. As De Bode puts it, 'Until we tokenized our tokenized Treasury funds, it was very difficult to essentially earn the risk‑free rate on chain.' With yield coins, that is now a reality. What are yield coins? Yield bearing assets explained first appeared on TheStreet on Jul 30, 2025 This story was originally reported by TheStreet on Jul 30, 2025, where it first appeared. Sign in to access your portfolio
Business Standard
2 days ago
- Business
- Business Standard
Asian stocks end mixed, China benchmark up 0.17%
Asian stocks ended mixed in cautious trade on Wednesday as caution prevailed ahead of big U.S. tech earnings, the Fed and BoJ rate decisions, and the August 1 tariff deadline. Upcoming U.S. inflation and jobs data also remained on investors' radar. U.S. and Chinese officials concluded two days of talks in Stockholm, but there was no agreement on tariff truce extension. U.S. officials said President Trump will decide whether to extend truce. Treasuries held steady in Asian trading after climbing the most in a month in the previous session. Copper and gold edged up as the dollar weakened after hitting a more than one-month high on Tuesday. Oil held its biggest gain in six weeks as Trump reiterated that further levies on Russia remained on the table without a Ukraine truce. China's Shanghai Composite index ended up 0.17 percent at 3,615.72 after hitting a six-month high earlier on eased concerns over U.S. tariff threats.
