Treasuries stabilized after two days of volatile trading as investors assessed whether the US Treasury’s efforts to contain long-term borrowing costs through debt buybacks could provide more than temporary relief. The Dollar weakened broadly, while Asian equities advanced and US equity futures pointed higher.

The US 30-year Treasury yield held around 5.25% after falling 9 basis points on Wednesday before rebounding 6 basis points on Thursday. Investors continued to assess the Treasury’s plans to increase debt buybacks, with Treasury Secretary Scott Bessent indicating there may be scope for larger repurchases alongside a broader fiscal plan.

The stabilization in US Treasuries provided some support for risk assets. MSCI’s Asia Pacific equity index rose around 0.5%, while equity futures pointed to a stronger Wall Street open. European stocks were set for a subdued start after seven consecutive sessions of losses, their longest losing streak since September 2023.

The Dollar weakened against all of its Group-of-10 peers ahead of US manufacturing PMI data, which could provide further insight into the health of the world’s largest economy and influence expectations for the Federal Reserve’s policy path.

In the UK, retail sales remained weak. Retail sales fell 0.5% month-on-month in July, in line with expectations but reversing part of June’s 1.0% increase. On an annual basis, sales rose 1.6%, significantly below the 2.2% forecast and down from 4.2% previously. Core retail sales also disappointed, declining 0.9% month-on-month versus expectations for a 0.5% fall, pointing to softer underlying consumer demand.

European data also delivered a mixed picture. Germany’s manufacturing PMI improved to 54.1 from 52.2, comfortably beating expectations of 52.1 and signaling continued expansion in the sector. However, Germany’s services PMI slipped to 48.5 from 49.8, missing the 50.1 forecast and remaining in contraction territory. The composite PMI eased to 51.0 from 51.3, also slightly below expectations.

In Japan, the Yen was little changed after the country’s key inflation gauge accelerated for a second consecutive month, keeping expectations alive that the Bank of Japan could deliver another rate hike in the near term.

In commodities, Brent crude fell 0.4% to around $93.42 a barrel, ending a five-day winning streak. Gold gained 0.6% to approximately $4,545 an ounce and remained on track for a third consecutive weekly advance. Bitcoin climbed above $70,000 for the first time in more than two months following President Trump’s meeting with cryptocurrency industry leaders.

In the technology sector, Broadcom was reported to be seeking more than $60 billion in its latest AI-related debt deal, highlighting continued investor appetite for financing the rapid expansion of artificial intelligence infrastructure. Meanwhile, Nvidia said it currently has no China-specific LPU product on its roadmap.

Overall, markets entered Friday with a more constructive tone as Treasury yields stabilized and the Dollar weakened. However, the combination of elevated long-term US yields, softer UK consumer data and mixed European economic signals keeps the outlook highly dependent on incoming economic data and central-bank expectations.

FISG Daily Market Wrap provides a concise view of the forces moving global markets, helping investors stay informed and better prepared for what comes next.

FISG — Interstellar Group