Speculators? net bearish bets on 30-year Treasury bond futures grew to a record high in the latest week, data from the Commodity Futures Trading Commission showed on Friday, potentially reflecting expectations of higher yields on longer-dated U.S. government bonds.
S&P: * S&P SAYS OUTLOOK ON AZERBAIJAN REVISED TO NEGATIVE FROM STABLE, RATINGS AFFIRMED AT 'BB+' * S&P SAYS AZERBAIJAN OUTLOOK REVISED TO NEGATIVE ON RISING RISKS FROM MILITARY CONFLICT OVER NAGORNO-KARABAKH; RATINGS AFFIRMED. * S&P SAYS NEGATIVE OUTLOOK ON AZERBAIJAN REFLECTS RISING RISKS TO FISCAL PERFORMANCE, EXTERNAL BALANCE SHEET, AND MACRO-FINANCIAL STABILITY.
The U.S. Treasury market still runs the risk of abrupt freezes in liquidity like the one seen in March and April, as the COVID-19 pandemic roiled the financial system, a member of the Federal Reserve Bank of New York's Market Committee said on Friday.
The U.S. Treasury market still runs the risk of abrupt freezes in liquidity like the one seen in March and April, as the COVID-19 pandemic roiled the financial system, a member of the Federal Reserve Bank of New York's Market Committee said on Friday.
* FITCH AFFIRMS ICELAND AT 'A'; OUTLOOK NEGATIVE. * FITCH SAYS CORONAVIRUS PANDEMIC HAS RESULTED IN SHARP DETERIORATION IN ICELAND'S NEAR-TERM GROWTH AND PUBLIC FINANCE OUTLOOK Source text for Eikon:
Dallas Federal Reserve Bank President Robert Kaplan on Wednesday repeated his forecast for the U.S. economy to shrink about 2.5% this year and grow a strong 3.5% next year, adding that he expects the pandemic to continue to impact daily life well into next year.
Fitch cut Morocco's credit rating to 'junk' on Friday, blaming the coronavirus for savaging the north African country's finances. The one-notch cut to BB+ from BBB- is a painful one for the government as it means that two of three main agencies now grade it in a higher-risk category that can lead to higher borrowing costs.
The Federal Reserve Bank of New York announced on Friday that it selected additional counterparties to support the commercial paper funding facility and the secondary market corporate credit facility as needed. Read more on the New York Fed's website https://www.newyorkfed.org/newsevents/news/markets/2020/20201023.
* Dow Jones Industrial Average up 0.2%; S&P 500 up 0.4% * U.S. Treasury yields hit 4-month highs. * European stocks boosted by strong Q3 earnings. * Britain, EU meet for Brexit talks. * Graphic: 2020 asset performance http://tmsnrt.rs/2yaDPgn. * Graphic: World FX rates in 2020 http://tmsnrt.rs/2egbfVh. By Matt Scuffham.
Argentina's economy minister Martin Guzman on Friday vowed to maintain a slow rate of currency devaluation despite rising pressure on the peso and tumbling foreign reserves.
U.S. business activity increased to a 20-month high in October, but the pace of new business growth and new orders eased slightly amid the lingering COVID-19 pandemic and caution ahead of the Nov. 3 presidential election. Data firm IHS Markit said on Friday its flash U.S. Composite PMI Output Index, which tracks the manufacturing and services sectors, rose to a reading of 55.5 this month.
Mexican President Andres Manuel Lopez Obrador said on Friday that interest rates are still high and must fall further for people to take out loans and help the economy recover from the effects of the coronavirus pandemic. Speaking at a regular news conference, Lopez Obrador said the economy was making up ground lost in the pandemic, but that the country was in a "crisis situation".
Brazil's balance of payments position with the rest of the world improved in September, figures showed on Friday, as the sixth current account surplus in a row helped narrow the 12-month accumulated deficit to its smallest in more than two years.
Benchmark U.S. Treasury yields
rose hit four-month highs on Friday and the yield curve
steepened on hopes that U.S. lawmakers are close to striking a
deal on new fiscal stimulus.
The Canadian dollar edged higher
against its U.S. counterpart on Friday, as investors welcomed
signs of progress on a U.S. coronavirus relief package and some
domestic economic indicators were ...
Mexican President Andres Manuel Lopez Obrador said on Friday that interest rates are still high and need to fall further in order for people to take out loans. "Interest rates remain high," Lopez Obrador told a regular news conference.
Brazil posted a current account surplus of $2.3 billion in September, the central bank said on Friday, the sixth consecutive monthly surplus but less than the $3 billion forecast in a Reuters poll of economists.
Brazil's IPCA-15 consumer price index rose 0.94% in the month to mid-October, statistics agency IBGE said on Friday, the highest this year and the highest for any October since 1995 as food prices continued to tick higher. The monthly rate was higher than the 0.81% median forecast in a Reuters poll and more than double the previous month's 0.45% rise.
* Graphic: World FX rates in 2020 http://tmsnrt.rs/2egbfVh. * Graphic: Trade-weighted sterling since Brexit vote http://tmsnrt.rs/2hwV9Hv. By Elizabeth Howcroft. The pound fell against the dollar and euro on Friday after the UK Purchasing Managers' Index fell to a four-month low, but was still set to end the week up, after a new phase of intense Brexit talks restarted.
Consumer confidence in Brazil fell in October for the first time in six months, a survey indicated on Friday, with persistent worries over the COVID-19 pandemic weighing heavily and suggesting that the economy's recovery may be losing steam.
Mexican retail sales rose in August by 2.5% from July in seasonally-adjusted terms, the fourth monthly increase in a row, as consumer spending continues to recover from the effects of the coronavirus pandemic, official data showed on Friday. The pace of growth was the weakest since May, according to the data published by national statistics agency INEGI.
Consumer confidence in Brazil fell in October for the first time in six months, a survey indicated on Friday, a sign that the economy's recovery from the worst of the crisis triggered by the coronavirus pandemic earlier this year may be losing steam.
* IHS Markit's flash Composite Purchasing Managers' Index at 49.4. * Peripheral yields lower across the board. * ECB expected to extend QE by year end. * Euro zone periphery govt bond yields http://tmsnrt.rs/2ii2Bqr. By Abhinav Ramnarayan and Stefano Rebaudo.
1/ ALMOST THERE. The last week of the 2020 U.S. presidential election race will test the durability of the Biden trade -- assets viewed as sensitive to the political fortunes of Democratic challenger Joe Biden, who has widened his lead over President Donald Trump in recent weeks. Signs that Biden is cruising to a strong finish could benefit alternative energy, cyclical stocks and cannabis firms.
1/ ALMOST THERE. The last week of the 2020 U.S. presidential election race will test the durability of the Biden trade -- assets viewed as sensitive to the political fortunes of Democratic challenger Joe Biden, who has widened his lead over President Donald Trump in recent weeks.
Equity Bancshares Inc (EQBK): * EQUITY BANCSHARES (EQBK)- FEDERAL RESERVE BANK OF KANSAS CITY ADVISED CO IT HAD NO OBJECTION TO REPURCHASE OF UP TO 800,000 SHARES OF CLASS A COMMON STOCK Source : Further company coverage:
* UK October flash PMI survey shows weaker growth than forecast. * Tighter lockdown rules hit hospitality and consumer confidence. * Economists say record Q3 retail growth will be hard to sustain. By Andy Bruce.
Britain's economic recovery has lost more momentum this month as a resurgence of the coronavirus pandemic hit businesses in the hospitality and transport sectors, a survey showed on Friday. An early "flash" reading of the IHS Markit/CIPS UK Composite Purchasing Managers' Index, a gauge of private sector growth, fell to a four-month low of 52.9 in October from 56.5 in September.
* Russian c.bank expected to hold rates. * Polish zloty extends losses into a third session. * MSCI EM stocks index to gain for a fourth straight week. By Ambar Warrick. Turkey's lira hovered around record lows on Friday after the central bank unexpectedly kept interest rates on hold, while Russia's rouble was little changed ahead of a rate decision there.
A dearth of action in fixed income markets is prompting bond investors to focus more on currencies to spot market trends, marking a turning point for the gigantic but generally murky foreign exchange markets. Buying bonds at the rate of roughly $2 billion per hour in the wake of the COVID-19 pandemic, central banks have crushed volatility and reduced its efficacy as a signalling instrument.
Japanese government bond prices fell on Friday, in line with overnight losses in U.S. Treasuries, on hopes that lawmakers are close to striking a deal on new fiscal stimulus. Benchmark 10-year JGB futures fell 0.15 point to 151.83, having hit its two-week low in early trade, with a trading volume of 21,492 lots.
* Sept nationwide core CPI falls 0.3% yr/yr vs f'cast -0.4% * Slide in energy costs, govt travel subsidies weigh on CPI. * Excluding effect of govt campaign, core CPI was flat yr-yr. * BOJ seen trimming growth, price f'casts next week - sources. By Leika Kihara.
Japan's factory activity extended declines in October, a private sector survey showed on Friday, highlighting the impact a resurgence in global coronavirus infections has had on the world's third-largest economy. The contraction in manufacturing is at risk of extending further as new infections throw cold water on hopes of an export-led recovery for the trade-reliant economy.
* Sept nationwide core CPI falls 0.3% yr/yr vs f'cast -0.4% * Core-core CPI flat in Sept from year-before level. * Slide in energy costs, govt travel subsidies weigh on CPI. * BOJ seen trimming growth, price f'casts next week - sources. By Leika Kihara.
Japan's core consumer prices fell 0.3 percent in September from a year earlier, government data showed on Friday. The core consumer price index, which includes oil products but excludes fresh food prices, compared with economists' median estimate for a 0.4 percent annual fall. Stripping away the effect of fresh food and energy, consumer prices were unchanged in September from a year ago.
New Jersey plans to sell $4 billion of bonds in the U.S. municipal market to plug a hole in its coronavirus-hit budget instead of borrowing through a Federal Reserve loan program, a state spokeswoman said on Thursday.
* All three major U.S. stock indexes close higher. * 10-year Treasury at four-month highs. * European stocks post fourth day of losses. * Graphic: 2020 asset performance http://tmsnrt.rs/2yaDPgn. * Graphic: World FX rates in 2020 http://tmsnrt.rs/2egbfVh. By Stephen Culp.
Benchmark U.S. Treasury yields
rose to four-month highs on Thursday and the yield curve
steepened on hopes that U.S. lawmakers are close to striking a
deal on new fiscal stimulus.
* All three major U.S. stock indexes turn positive. * 10-year Treasury yields highest since early June. * Europe posts fourth day of losses. * Graphic: 2020 asset performance http://tmsnrt.rs/2yaDPgn. * Graphic: World FX rates in 2020 http://tmsnrt.rs/2egbfVh. By Stephen Culp.
Federal Home Loan Mortgage Corp : * FREDDIE MAC PRICES $1.1 BILLION MULTIFAMILY K-DEAL, K-118. * FREDDIE MAC (FMCC) - EXPECTS TO ISSUE APPROXIMATELY $1.1 BILLION IN K CERTIFICATES, WHICH ARE EXPECTED TO SETTLE ON OR ABOUT OCTOBER 29, 2020 Source text for Eikon: Further company coverage:
Investors have been buying options on eurodollar futures and interest rate swaps to bet on higher rates and falling U.S. Treasury debt prices if lawmakers pass more fiscal stimulus after next month?s presidential election, if not before.
Brazil's government will revise its 2020 gross domestic product forecast, currently a contraction of 4.7%, early next month, special secretary at the economy ministry Waldery Rodrigues said on Thursday. Economy Minister Paulo Guedes said earlier this week that he now expects the economy to shrink by 4% this year.
Brazil's government will revise its 2020 gross domestic product forecast, currently a contraction of 4.7%, early next month, special secretary at the economy ministry Waldery Rodrigues said on Thursday.
U.S. home sales surged to a more than 14-year high in September, boosted by historically low mortgage rates, but record high prices amid a shortage of houses could curb further gains. The National Association of Realtors said on Thursday that existing home sales jumped 9.4% to a seasonally adjusted annual rate of 6.54 million units last month, the highest level since May 2006.
The number of Americans filing new claims for unemployment benefits fell more than expected last week, but remained very high as the labor market recovery shows signs of strain amid a relentless COVID-19 pandemic and ebbing fiscal stimulus.
Benchmark U.S. Treasury yields
rose on Thursday, but held just below four-month highs as
investors waited on whether lawmakers will agree to pass new
stimulus before the Nov. 3 presidential election.
The number of Americans filing new claims for unemployment benefits fell more than expected last week, but remained very high as the labor market recovery shows signs of strain amid a relentless COVID-19 pandemic and ebbing fiscal stimulus. While other data on Thursday showed home sales racing to a more than 14-year high in September, economic activity is slowing heading into the fourth quarter.
* Weekly jobless claims fall 55,000 to 787,000. * Continuing claims drop 1.024 million to 8.373 million. * Existing home sales jump 9.4% in September. By Lucia Mutikani.
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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