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02 Sep 2025

Debt worries

• Debt jitters. Concerns about UK debt pushed up yields & weighed on GBP. Shaky risk sentiment supported the USD. AUD lost some ground.• AU growth. Q2 GDP released today. A few push-pull forces at work. Growth expected to have picked up. RBA set to continue to lower rates slowly.• Macro events. BoE members speak tonight, as does RBA Gov. Bullock & Fed voter Musalem. US JOLTS job openings data also released. Global Trends A few jitters across markets overnight with worries about the UK’s fiscal sustainability at the front of investors’ minds. Pressure is on UK PM Starmer and...

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Jump In Long-Term Yields Pummels Currency Markets

Traders are cutting risk and global interest rates are ratcheting higher as investors sell long-duration instruments this morning, suggesting that a relatively calm summer in financial markets is quickly coming to a rude end. Treasury yields are climbing across the end of the curve, equity futures are retreating ahead of the North American open, and the dollar is surging against all of its major rivals as a series of idiosyncratic events unleash turbulence across fixed-income markets. 30-year UK gilt yields are holding near their highest levels since 1998 on reports suggesting that chancellor Rachel Reeves is struggling to find fiscal...

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