GBP

The Japanese yen is stabilising after an extraordinarily-turbulent session. With markets closed for the Golden Week holiday, the exchange rate briefly crashed through the 160-per-dollar threshold for the first time since 1990, and then reversed almost five big figures higher when rumours of central bank intervention hit the wires early this morning – generating a total intra-day move that was the widest since December 2022, and among the top 20 dollar-yen trading ranges in modern history. Official confirmation hasn’t yet been provided, and evidence of the traditional “rate checking” activity from the Bank of Japan is lacking thus far, but...

The dollar is holding steady and Treasuries are stable ahead of auctions that could see yields hold above the 5-percent threshold for the first time since November. The US will sell a record $69 billion in two-year notes later today, followed by $70 billion in five-year paper tomorrow, and another $44 billion in seven-year maturities on Thursday, testing investor demand for yields that could look attractive if the Federal Reserve eases aggressively in the latter half of the year – but might look too cheap if rate cuts are further delayed. The “term premium” – the extra compensation investors demand...