Finance and Markets

Latest edition

Sent Oct 12, 2026

• The hawk Fed Chair who broke the bond market?

  Fortune | FORTUNE

  Kevin Warsh’s hawkish pivot has helped send 30-year Treasury yields to their highest level since 2002 and pushed the bond sell-off into mortgages and bank balance sheets. The article argues that traders are bracing for more than $1 trillion in market-wide losses because “higher for longer” now looks like much higher for much longer—with consumers, businesses and banks paying for the Fed’s credibility.

• US Bond Traders Await CPI, Warsh For Insight on Fed’s Rate Path

  Bloomberg Markets

  Bond traders are watching the latest consumer-price inflation data and a planned appearance by Federal Reserve Chairman Kevin Warsh for clues about the pace of future rate hikes. The signals could help shape expectations for the Fed’s next moves—and move bond markets with them.

• For the first time ever, 10-year bond yields track diesel prices more closely than crude, and Trump’s fuel deal with Putin may be too little too late

  Fortune | FORTUNE

  Diesel prices have become a more important inflation and market signal than crude oil, with 10-year Treasury yields now tracking diesel more closely than crude for the first time. Trump’s diesel-tax suspension and proposed Russian fuel deal are unlikely to materially lower costs, and polling suggests cheaper fuel may not rescue Republicans with undecided voters.

• Bond Selloff May Mean Fewer Rate Hikes From Global Central Banks

  Bloomberg Markets

  A bond-market selloff is pushing borrowing costs higher on its own, doing some of the work central banks would otherwise accomplish through benchmark rate increases. If the pressure persists, policymakers may need fewer hikes to bring inflation under control—though financial conditions are tightening regardless.

• Nuveen's Cooper Sees Yield Risks Tilted to Upside

  Bloomberg Markets

  Laura Cooper of Nuveen says the risks to yields are tilted further upside, with inflation expectations threatening to create a “knock-on negative impact” for risk assets. Her view points to continued pressure across markets as investors weigh inflation and energy costs.

• Korean Bond Rally Seen Faltering as Traders Brace for Rate Hikes

  Bloomberg Markets

  South Korean bonds’ rally could soon run out of steam as government measures lose their punch and traders price in more interest-rate hikes. Strategists see the market’s initial calm giving way to renewed pressure from tighter monetary policy.

• Citi on Maneuvering Limited Government Fiscal Space

  Bloomberg Markets

  Governments and central banks are navigating limited fiscal space as they confront mounting economic pressures. Citi’s Stephanie von Friedeburg discusses the issues shaping policymakers’ thinking with Bloomberg’s Avril Hong at the IMF and World Bank Annual Meetings in Singapore.

• Big Banks Face Test as Earnings Season Begins

  Bloomberg Markets

  Major banks begin third-quarter earnings season from a position of strong credit quality, but higher rates and slowing investment banking activity could muddy the outlook. Investors will be watching wealth management at Morgan Stanley and JPMorgan, alongside signs of credit deterioration, AI-financing risks, and executive succession plans.

• China’s debt interest costs are soaring above U.S. levels and growing faster than any other budget category as Beijing struggles to prop up growth

  Fortune | FORTUNE

  China’s debt burden is becoming a bigger drag on growth: interest payments will consume 19.2% of central-government spending this year, up from 12% in 2014, while total debt has climbed sharply. Beijing’s state-led lending is keeping weak companies alive and fueling overcapacity just as consumers, property and investment remain subdued—a costly way to prop up an economy losing momentum.

• Healey Needs £35 Billion to Meet UK Spending Plans, IFS Says

  Bloomberg Economics

  The Institute for Fiscal Studies says Chancellor John Healey faces a £35 billion shortfall if Labour is to deliver its spending plans. The warning lands just before the budget, raising the prospect of tax rises, spending cuts or more borrowing to close the gap.