SocGen's Overnight Economic News Summary

BY MT Newswires | ECONOMIC | 05/12/26 05:55 AM EDT

05:55 AM EDT, 05/12/2026 (MT Newswires) -- Societe Generale in its early Tuesday economic news summary pointed out:

-- Brent tops US$105/barrel and 10-year United States Treasury scales 4.42% amid United States/Iran deadlock, resistance 4.48% into Tuesday's U.S. consumer price index, 10-year refunding. President Trump: ceasefire with Iran on 'massive life support'. The U.S. imposed sanctions on 12 companies and individuals helping to facilitate the sale and shipment of oil from Iran to China.

-- United Kingdom: end nigh for Prime Minister Starmer? Cabinet split over exit and timetable. Over 70 Labour members of parliament reported to have explicitly called for the PM to resign, the threshold for a leadership contest is 81.

-- Day ahead: U.S. CPI, consensus headline 3.7% year over year, core 2.7%. 10-year UST refunding auction. Federal Reserve speaker Goolsbee. European Central Bank's Dolence. Germany ZEW survey. Germany and the U.K. benchmark auctions. CPI for India and Brazil.

-- Nikkei +0.6%, EUR 10-year IRS +3.5bps at 3.10%, Brent crude +1.1% at US$105.4/barrel, Gold -0.4% at US$4,697/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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