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U.S. Treasuries strengthened on Wednesday after the Federal Reserve delivered its  third straight 25bps rate cut , easing concerns that policymakers were preparing to pause. Traders maintained expectations for  two additional cuts in 2026 , despite the Fed’s projections signalling only one. Short-End Leads Rally Yields fell across the curve: 2-year yield  dropped almost  8bps to 3.54%  — its biggest one-day drop in two months Longer-dated yields also retreated from multi-month highs Treasuries extended gains after Fed Chair  Jerome Powell  highlighted concerns over  weaker hiring . Bond managers described the move as a  relief rally , noting fears of a more hawkish message did not materialize. Fed Cuts, But Divisions Deepen The Fed lowered the benchmark rate to  3.50%–3.75% . The decision included  three dissents : Two  officials preferred no cut One  supported a larger  50bps  reduction Powell said the Fed is no...

 Asian equities slipped on Tuesday while the US dollar held steady, as investors positioned cautiously ahead of a widely expected  Federal Reserve rate cut  this week. The Japanese yen was calm after a magnitude-7.5 earthquake struck northeastern Japan, with limited market impact. Sentiment was subdued across the region as traders looked ahead to a series of central bank decisions. The  Reserve Bank of Australia ,  Swiss National Bank , and  Bank of Canada  are all expected to keep rates unchanged, while the Fed is set to deliver a quarter-point cut on Wednesday. The market’s focus, however, is shifting toward the  pace of easing in 2026 . Many major Wall Street banks expect fewer cuts next year due to persistent inflation concerns and stronger-than-anticipated US economic resilience. MSCI’s broadest index of Asia-Pacific shares outside Japan fell  0.28%  after a weak session on Wall Street. Japan’s  Nikkei  edged down  0....

U.S. Treasury yields sank on Thursday, with the  10-year note closing at 3.976% , its  lowest level of 2025 , marking a significant break below the psychologically important 4% line. This is only the second time yields have fallen below that threshold this year—the last being in April, following President Trump’s tariff announcement. Yields Drop as Economic Weakness Emerges The decline in yields comes as investors increasingly seek safety amid  weak U.S. economic data ,  rising banking concerns , and  renewed U.S.–China trade tensions . New York Fed  data showed a sharp contraction in services activity across New York, New Jersey, and Connecticut. Philadelphia Fed  manufacturing activity dropped to a six-month low. “These are not big hitters, but they point to macro weakness,” said  Padhraic Garvey , head of research for the Americas at ING. Market Dynamics: Fed Cuts, Inflation, and Shutdown Effects The move lower in yields reflects  growing ...

Key Takeaway:  JPMorgan’s chief US economist  Michael Feroli  expects the Fed to deliver  two more rate cuts  while highlighting surprisingly strong  productivity growth in 3Q , supported by steady GDP, resilient labor markets, and tech-driven capital spending. The debate inside the Federal Reserve continues to heat up as policymakers weigh the pace of interest-rate cuts. While newly appointed Fed governor  Stephen Miran  has called for aggressive easing to protect jobs, the majority of officials — including  Cleveland’s Beth Hammack  — remain in favor of a gradual approach. JPMorgan’s  Michael Feroli  said Miran’s call is unlikely to gain traction unless the labor market deteriorates sharply. For now, slowing but stable hiring and low layoffs suggest a  maturing cycle, not a distressed one . “Job growth has slowed, but we’re not seeing broad-based job losses,” he noted. Feroli emphasized that despite softer hiring,  ...

Key Takeaway:  Gold surged to a fresh record of  US$3,759.02 per ounce  before steadying, fueled by bets on further US interest rate cuts and a softer dollar, with investors awaiting  Fed Chair Jerome Powell’s speech  for policy signals. Gold prices hovered near record highs on Tuesday, underpinned by expectations of more US Federal Reserve rate cuts and a weaker greenback. Investors are closely watching Fed Chair  Jerome Powell’s remarks later today for clues on the central bank’s next moves. Spot gold held at  US$3,743.39 per ounce  as of 0238 GMT after touching an all-time peak of  US$3,759.02  earlier in the session. US gold futures for December delivery added  0.1% to US$3,779.50 . The US dollar index slipped  0.1% , making dollar-denominated bullion more attractive to overseas buyers. Analysts see the near-term trend as bullish, though a short-term pullback is possible. OANDA’s  Kelvin Wong  noted that key suppo...

  Key Takeaway: U.S. equities reversed early weakness to end Tuesday at fresh record highs, with investors betting that weaker labor data and large downward payroll revisions will accelerate the Federal Reserve’s rate-cut cycle. The S&P 500 gained 0.3%, the Dow Jones Industrial Average rose 0.4% to a record, while the Nasdaq 100 added 0.3%, just shy of a new peak. Market Performance S&P 500 : +0.3% to close at a record high. Dow Jones Industrial Average : +0.4%, also at a record close. Nasdaq 100 : +0.3%, narrowly missing a fresh record. Gains were led by  Alphabet (GOOGL US) , after an executive projected a US$58 billion revenue boost in its cloud unit by 2027. Drivers: Jobs Revision and Fed Outlook The Bureau of Labor Statistics reported payrolls would be revised  down by 911,000 jobs  for the 12 months through March. This follows last week’s weaker labor market data, reinforcing expectations for a dovish Fed shift. Northlight Asset Management CIO Chris Zac...

Key Takeaway Gold hit a fresh record above  US$3,600/oz  as traders priced in a September Fed rate cut and sought protection amid stagflation concerns, governance risks at the Fed, and tariff-driven inflation threats. Market Snapshot Gold Futures (DEC5) : Session High:  US$3,631.00  (+1.1%) Prior Close:  US$3,592.20  (record) ICE USD Index : 98.35 (–0.05) Treasury Yields : 2Y: 3.66% (+1.5 bps) 10Y: 4.272% (+0.9 bps) Drivers of the Rally Fed Policy Outlook : Markets fully pricing a  25bps cut  at Sept. 17 meeting. Lower rates reduce gold’s opportunity cost vs interest-bearing assets. Softer USD enhances appeal of gold to foreign investors. Safe-Haven Demand : Rising stagflation fears from tariffs slowing growth while raising prices. Trump pressures Fed: attempts to fire Governor Lisa Cook, push Powell for deeper cuts. Governance Premium : Concerns over Fed independence adding to gold’s bid. U.S. Treasury Secretary Scott Bessent to start process of ...

Key Takeaway Weak U.S. labor data pushed traders to almost fully price in a  September Fed rate cut , sending Treasuries and tech stocks higher. Markets now anticipate at least  two cuts in 2025 , with Friday’s payrolls report as the next key test. Market Snapshot S&P 500 : +0.5% to 6,438.26 Nasdaq Composite : +1% to 21,497.73 Dow Jones : –0.1% to 45,271.23 30Y Treasury Yield : Near 5% before rebounding USD : Weaker; Dollar Index fell Gold : Record US$3,640.10 (+1.3%) on rate cut bets Key Drivers JOLTS Report : Job openings fell to 10-month low, signaling softer labor demand. Fed Expectations : Traders now see 95%+ chance of a 25bps cut in September; at least two cuts priced in for 2025. Tech Rally : Alphabet hit record high (Google Chrome ruling). Apple advanced on AI-powered Siri search plans. Corporate Moves : Salesforce warned on weaker sales growth after hours. Fed & Analyst Commentary Fed Governor Waller : Supports starting cuts in September, with debate over pac...

U.S. equities pulled back Monday, trimming Friday’s  Jackson Hole rally  as traders balanced hopes for Federal Reserve rate cuts with caution ahead of key inflation data. Fed Outlook Chair  Jerome Powell  signaled the Fed may pivot soon, noting that “the balance of risks appears to be shifting” toward a weaker job market restraining inflation. Futures markets : 86% odds of a September cut, up from 73% pre-speech (CME FedWatch). Key risk:  July PCE inflation report  due Friday, the Fed’s preferred gauge, which could test easing bets. Market Moves S&P 500 : lower Nasdaq Composite : lower (−0.6% last week despite Friday’s rebound) Dow Jones Industrial Average : lower Washington Watch Intel precedent may expand : Kevin Hassett, National Economic Council director, suggested the U.S. could take more equity stakes in domestic companies, echoing last week’s  $8.9 billion Intel investment . Trump later confirmed the idea, raising the prospect of further sta...