Yields on shorter-end Japanese government bonds rose to a one-week high on Wednesday as the market braced for the Bank of Japan to raise interest rates this week. The two-year JGB yield rose 2 basis points 0.69% and the five-year yield rose 2.5 bps to 0.87%, their highest level since Jan. 16. The 10-year JGB yield rose 1 bp to 1.195%, also its highest since Jan. 16.
Japan's retailers, typically among the most tight-fisted of employers, are offering big pay increases for a second year in a row, meaning squeezed profits for companies, more spending money for workers, and a green light for more central bank rate hikes.
* US 10-year, two-year yields slip, but tariff threat lingers. * Markets price in 38 bps of Fed easing in 2025. * Trump says he may impose tariffs on Canada, Mexico next month. * US 2/10 curve flattens, hits narrowest gap since late December. By Gertrude Chavez-Dreyfuss.
Corem Property Group AB: * COREM PROPERTY GROUP AB ISSUES SENIOR UNSECURED GREEN BONDS. * COREM PROPERTY GROUP AB - ISSUED NEW SENIOR UNSECURED GREEN BONDS OF SEK 1 BILLION. * COREM PROPERTY GROUP AB- NEW GREEN BONDS WERE ISSUED UNDER A FRAMEWORK OF SEK 2 BILLION, HAVE A TENOR OF 3.25 YEARS AND MATURES ON 28 APRIL 2028 Source text: Further company coverage:
Surrounded by crypto executives buoyed by Donald Trump's presidency, South Africa's central bank chief on Tuesday criticized industry lobbying of U.S. policymakers, telling a Davos panel event that bitcoin made no more sense as a reserve asset than beef or apples.
* US 10-year, two-year yields slip but tariff threat lingers. * Markets price in 39 bps of Fed easing in 2025. * Trump says he may impose tariffs on Canada, Mexico next month. * US 2/10 yield curve flattens, hits narrowest gap since late December. By Gertrude Chavez-Dreyfuss and Ankur Banerjee.
Economists have launched a fresh wave of upward revisions to projections for Brazil's interest rate this year, citing deteriorating inflation expectations, a weaker currency and lingering concerns over the fiscal outlook of Latin America's largest economy. Citi on Tuesday forecast rates to peak at 15.50% in June, following similar moves by Itau, XP and Santander.
The Russian rouble surged past the 100 mark against the U.S. dollar on Tuesday, supported by forex sales by the central bank and exporting companies as well as by market optimism over the easing of Russia-U.S. tensions. The rouble had strengthened by 1.2% to trade at 99.75 to the dollar by 1500 GMT, over-the-counter market data showed.
U.S. President Donald Trump has promised to address a longstanding trade deficit with the European Union, saying he will reverse that by imposing tariffs or making the EU buy more U.S. oil and gas.
* BANK OF CANADA TO AUCTION C$3.5 BILLION OF FUNGIBLE CASH MANAGEMENT BILLS ON WEDNESDAY, FINAL CALL FOR TENDERS SHOWS Source text: https://www.bankofcanada.ca/markets/government-securities-auctions/calls-for-tenders-and-results/cash-management-bills/
China is not seeking a trade surplus and is willing to import more competitive and high-quality products and services to balance trade, Ding Xuexiang, the country's vice premier, said on Tuesday. Addressing the 55th annual World Economic Forum meeting in Davos, Switzerland, Ding said economic globalisation was a process of mutual benefit and shared progress.
Surrounded by crypto executives buoyed by Donald Trump's presidency, South Africa's central bank chief on Tuesday criticized industry lobbying of U.S. policymakers, telling a Davos panel event that bitcoin made no more sense as a reserve asset than beef or apples.
Donald Trump's second term as U.S. president will draw a lot of investment into crypto, the CEO of Coinbase told a panel discussion at the World Economic Forum in Davos. "The Trump effect cannot be denied. Legislation in Congress will bring a lot of new investment to cryptocurrencies, Armstrong said, adding that bitcoin's recent all-time high was largely due to Trump's inauguration.
Israel spent about 100 billion shekels on military conflicts in 2024, the finance ministry said on Tuesday, a figure that has sharply pushed up government borrowing and the country's debt burden. The ratio of public debt to gross domestic product rose to 69.0% at the end of last year, from 61.3% in 2023.
U.S. President Donald Trump's decision to leave the Paris climate accord for the second time was regrettable but unsurprising, Francois Villeroy de Galhau, a European Central Bank official, said on Tuesday.
After two years of progress on inflation and surprisingly persistent economic growth, the Federal Reserve next week meets with one eye on new Trump administration policies and another on a bond market that has ratcheted up borrowing costs even as U.S. central bankers have been cutting interest rates.
* Fed faces challenges from bond market, Trump policies. * Rise in bond yields impacting borrowing costs. * Fed officials emphasize cautious approach amid policy uncertainties. By Howard Schneider.
The pound fell against a rebounding dollar on Tuesday even as U.S. President Donald Trump stopped short of implementing tariffs as signs of a softening British labour market reinforced expectations for a February rate cut from the Bank of England.
German investor morale fell more than expected in January, the ZEW economic research institute said on Tuesday, after the German economy contracted for the second consecutive year. The institute's economic sentiment index fell to 10.3 points from 15.7 points in December, well below the 15.3 forecast by analysts.
European Central Bank policymakers are likely breathing a sigh of relief that the new U.S. administration did not impose the blanket trade tariffs some had feared and a rate cut next week now seems like a done deal.
* ECB rate cut at Jan 30 meeting fully priced in. * Markets see four cuts in 2025. * Investors had feared blanket trade barriers. By Balazs Koranyi and Francesco Canepa. European Central Bank policymakers are likely breathing a sigh of relief that the new U.S. administration did not impose the blanket trade tariffs some had feared and a rate cut next week now seems like a done deal.
* * Strongest reading since February 2024. * Business surveys have shown a sharp fall in employment outlook. By Andy Bruce and David Milliken. British pay growth stayed stubbornly strong in the three months to November but there were more signs of a softening jobs market, according to data on Tuesday that reinforced the current outlook for Bank of England interest rates.
Euro zone government bond yields edged lower on Tuesday after U.S. President Donald Trump said he wouldn't immediately impose new tariffs, leading investors to forecast fewer inflationary policies from the new U.S. administration. Markets had expected that Trump would announce trade tariffs via executive orders, raising the prospects for higher-for-longer Federal Reserve policy rates.
Japan's government is likely to submit a nominee on Jan. 28 to fill a seat on the central bank's board that opens up in March, three government and ruling party sources told Reuters. The nominee, who would need to be approved by both houses of parliament, would replace economist-turned Bank of Japan board member Seiji Adachi, whose five-year term ends on March 25.
Economists are split on whether Singapore's central bank will loosen monetary policy this week or leave its settings unchanged to wait to see what policies U.S. President Donald Trump introduces in his second term.
* US 2-year, 10-year yields slip but tariff threat lingers. * US rate futures price in 44 bps of easing in 2025. * Trump says thinking of tariffs on Canada, Mexico next month. By Ankur Banerjee.
Japanese government bond yields fell on Tuesday, tracking U.S. Treasury yields which slipped after President Donald Trump did not impose tariffs on his first day in office.
China's economy grew 5% last year, matching the government's target, but in a lopsided fashion, with many people complaining of worsening living standards as Beijing struggles to transfer its industrial and export gains to consumers.
* Trump tariff threat on Mexico, Canada from Feb. 1 turns stocks lower. * Mexican peso, Canadian dollar badly hit. * Treasury yields pare losses. By Rae Wee. Global shares and U.S. Treasuries were volatile on Tuesday, reversing a brief relief rally from early in the session in the first few hours of Donald Trump's new presidency after he announced plans for trade tariffs on neighbouring countries.
* US 2-year, 10-year yields slip but tariff threat lingers. * US rate futures price in 44 bps of easing in 2025. * Analysts expect more to come. By Ankur Banerjee. U.S. Treasury yields slipped on Tuesday after President Donald Trump did not impose tariffs on his first day in office, suggesting a gradual approach to policies and providing relief to investors worried about inflation resurfacing.
The South Korean economy barely grew last quarter as political chaos weighed on consumer spending, according to a Reuters poll of economists who expect the Bank of Korea to cut interest rates next month following a surprise hold last week.
U.S. President Donald Trump is ordering federal agencies to "investigate and remedy" persistent U.S. trade deficits, and address other countries' unfair trade practices and currency manipulation, according to a draft White House trade memo seen by Reuters that stops short of ordering immediate new tariffs.
U.S. President Donald Trump is ordering federal agencies to "investigate and remedy" persistent U.S. trade deficits, and address other countries' unfair trade practices and currency manipulation, according to a draft White House trade memo seen by Reuters that stops short of ordering immediate new tariffs.
Argentina posted a record $18.9 billion trade surplus for 2024, according to official data released on Monday, that largely coincides with libertarian President Javier Milei's first full year on the job.
- Companies around the world grew increasingly more optimistic about global growth in the coming year, but concerns about economic volatility and inflation remained, according to a survey on Monday as leaders gathered in Davos, Switzerland. Nearly 60% of bosses in a survey from accountants PwC felt optimistic about global growth in the 12 months ahead, compared to 38% a year earlier.
Guggenheim Partners' chief investment officer forecast on Monday that the U.S. Federal Reserve is likely to cut interest rates roughly every quarter in 2025, bringing the reduction to around 75 basis points or even a full percentage point this year.
Guggenheim Partners' chief investment officer forecast on Monday that the U.S. Federal Reserve is likely to cut interest rates roughly every quarter in 2025, bringing the reduction to around 75 basis points or even a full percentage point this year.
* James Longsdon says should have better view of US by summer. * Fitch already has tariff assumptions baked into ratings. * UK rating has more 'headroom' that France's for now. By Marc Jones.
Canadian firms see improved demand and sales in the coming year, largely fueled by rate cuts, but are concerned about the potential damage from promised U.S. policies, the Bank of Canada said on Monday. The Bank's fourth quarter business outlook survey said overall business sentiment remained subdued.
European Union finance ministers will approve French Prime Minister Francois Bayrou's deficit-cutting plan on Tuesday as it complies with the EU's recommendations to bring the French deficit below 3% of GDP by 2029, officials said.
A global effort by central banks to join the fight against climate change has hit a major hurdle with the U.S. Federal Reserve's decision to leave a club devoted to policing environmental risk in finance. The Fed said on Friday it would quit the Network for Greening the Financial System because it had "broadened in scope, covering a wider range of issues that are outside of the statutory mandate".
Mexico's headline and core inflation rates will likely land below 4% in January, deputy central bank governor Jonathan Heath told newspaper Excelsior in a story published on Monday, adding that the bank does not need to exaggerate a restrictive posture.
Brazil's central bank on Monday sold a total of $2 billion in two separate dollar auctions with repurchase agreement, it said in statements, its first foreign exchange intervention this year after selling more than $30 billion in December. The latest interventions are also the first under new central bank governor Gabriel Galipolo, appointed by President Luiz Inacio Lula da Silva.
All five members of the Bank of Israel's monetary policy committee voted on Jan. 6 to leave the benchmark interest rate at 4.50%, minutes of the discussion showed on Monday.
European Union finance ministers will approve French Prime Minister Francois Bayrou's deficit-cutting plan on Tuesday as it complies with the EU's recommendations to bring the French deficit below 3% of GDP by 2029, officials said.
Rating agencies Fitch and S&P Global downgraded Property developer China Vanke on Monday as the company sinks further into a liquidity crunch within a struggling property sector in China.
The pound hit a fresh five-month low versus the euro on Monday, even as it rose against a weakening dollar, as recent economic data and comments from a Bank of England official led investors to increase their bets on future BoE rate cuts.
The pound hit a fresh five-month low versus the euro on Monday, even as it rose against a weakening dollar, as recent economic data and comments from a Bank of England official led investors to increase their bets on future BoE rate cuts.
Greece's current account deficit shrank slightly in November compared to the same month in 2023, helped by robust tourism revenues, the Bank of Greece said on Monday. Central bank data showed the current account deficit was 3.15 million euros in November, down from a deficit of 3.18 billion euros in the same month a year earlier.
Greece's current account deficit shrank in November compared to the same month in 2023, the Bank of Greece said on Monday. Central bank data showed the current account deficit was 3.15 million euros in November, down from a deficit of 3.18 billion euros in the same month a year ago.
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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