SocGen's Overnight Economic News Summary

BY MT Newswires | ECONOMIC | 09/12/25 06:42 AM EDT

06:42 AM EDT, 09/12/2025 (MT Newswires) -- Societe Generale in its early Friday economic news summary pointed out:

-- US dollar (USD) off lows in Asia, 10-year United States Treasury yield recovers from dip below 4.0%. Above forecast increase in weekly jobless claims, tame August core consumer price index cement rate cut next week at the Federal Reserve. "Decent" 30-year UST auction stop through 0.1bp, non-dealer bidding at 90.0%.

-- U.S.-Japan finance ministers joint statement -- commit to transparent currency policies. Won't manipulate currency for competitive advantage.

-- United Kingdom July gross domestic product 0.0% month over month, 0.2% three-month/over/three-month, in line with forecast. Services 0.1%, manufacturing -1.3%, construction 0.2%, trade deficit little changed at 22.2 billion pounds.

-- Day ahead: France ratings update by Fitch after-market (AA-, negative outlook). European Central Bank speakers Kocher, Rehn and Nagel. University of Michigan preliminary sentiment. India's consumer price index.

-- Nikkei +0.8%, EUR 10-year IRS +2bps at 2.62%, Brent crude -0.8% at $65.8/barrel, Gold +0.3% at $3,648/oz.

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In general the bond market is volatile, and fixed income securities carry interest rate risk. (As interest rates rise, bond prices usually fall, and vice versa. This effect is usually more pronounced for longer-term securities.) Fixed income securities also carry inflation risk and credit and default risks for both issuers and counterparties. Unlike individual bonds, most bond funds do not have a maturity date, so avoiding losses caused by price volatility by holding them until maturity is not possible.

Lower-quality debt securities generally offer higher yields, but also involve greater risk of default or price changes due to potential changes in the credit quality of the issuer. Any fixed income security sold or redeemed prior to maturity may be subject to loss.

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