SocGen's Overnight Economic News Summary

BY MT Newswires | ECONOMIC | 02/25/26 06:24 AM EST

06:24 AM EST, 02/25/2026 (MT Newswires) -- Societe Generale in its early Wednesday economic news summary pointed out:

-- Bond yields back off technical support led by Japanese government bonds on dovish Bank of Japan board appointments (10-year +4.5bps), upside surprise for Australian core consumer price index, recovery in Tech stocks. The US dollar (USD) broadly offered. Two-year United States Treasury auction average stats: tail 0.1bp, non-dealer bidding 91.2%, bid-to-cover ratio falls to 2.63 times.

-- Australia January headline CPI unchanged at 3.8% year over year, core trimmed mean ticks up to 3.4% from 3.3% (+0.3% month over month). Reserve Bank of Australia futures discount next 25bps hike in May. Three-year ACGB +3.5bps, AUD/USD resistance 0.7147 (Feb. 12 high), AUD/JPY new high at 110.88.

-- Day ahead: Nvidia results, Federal Reserve speakers Barkin, Schmid and Musalem. Five-year UST auction, European Central Bank's Vujcic. South Africa's budget.

-- Nikkei +2.2%, EUR 10-year IRS unchanged at 2.73%, Brent crude +0.7% at $71.4/barrel, Gold +0.5% at $5,187/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.

Before investing, consider the funds' investment objectives, risks, charges, and expenses. Contact Fidelity for a prospectus or, if available, a summary prospectus containing this information. Read it carefully.

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