Market Brief, North America

Happy Monday. The dollar is trading near its strongest levels since last year’s ‘Liberation Day’ tariff debacle, and measures of implied volatility are climbing as long-term borrowing costs soar and fears of another sovereign-debt crisis stalk the euro area. Virtually every major currency is in an oversold technical position relative to the greenback, with most pairs trading almost 2% below their 200-day moving averages. Last week brought a dovish repricing in expectations for US monetary policy. Throughout the week, Fed officials, including New York president John Williams. suggested policymakers needed more time to assess conditions, hinting that the next move...

Good morning. Government borrowing costs are pushing to multi-decade highs around the world this morning as a brutal selloff in bond markets intensifies. Ten-year Treasury yields are up 0.04 percentage points to 5.34%, their highest levels since 2002, Japanese bonds are going for the most since the mid-nineties, and rates in most other advanced economies are edging past thresholds last touched ahead of the global financial crisis in 2008. Global oil benchmarks are climbing once again, and the dollar is outperforming all its major peers as rate differentials widen, pushing currency markets into deeply-oversold technical territory. We don’t have a...