Commerzbank on Overnight News

BY MT Newswires | ECONOMIC | 10/23/25 06:19 AM EDT

06:19 AM EDT, 10/23/2025 (MT Newswires) -- Commerzbank in its "European Sunrise" note of Thursday highlighted:

Markets: United States Treasuries recover into 20-year auction, sideways in Asia. E-minis recover while Asian equities weaken. EUR falls below $1.16, oil rises on U.S. sanctions.

U.S.: Treasury Secretary Scott Bessent says the U.S. economy is looking good, might see a lower consumer price index in the coming months.

Trade: The Trump administration is considering broad restrictions of exports to China made with U.S. software (Reuters sources). President Donald Trump says he plans to talk with Chinese President Xi Jinping about Russian oil.

U.S./Russia: U.S. targets Rosneft and Lukoil in latest round of sanctions. Russian oil supply to India is now set to fall close to zero (sources).

==EUROPE:

France: Six LR ministers of "Lecornu 2" governmentThe are suspended by their party.

Germany: The economy ministry convened a crisis meeting with car producers late Wednesday to discuss chips supply shortage.

EU/Russia: The European Union approves the 19th sanctions package against Russia, banning liquefied natural gas imports in two stages by 2027. 26 of 27 governments will approve the Russian asset deal in principle on Thursday, with Hungary absent, but legal issues still need to be resolved (HB).

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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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