Global Bond Selloff Sends Clear Warning: Governments Must Pay More to Borrow Long-Term

Gerik

Economic

China–U.S. Trade War

Bond

Summary:

Governments across major economies are now facing sharply higher costs to borrow long-term as investors reprice risk in an era of surging public debt, volatile politics, and fading confidence in fiscal discipline

A Market Rebellion Against Fiscal Complacency

Recent developments in the global bond market signal a powerful shift: investors are no longer willing to accept historically low returns to finance long-term government debt. This week’s weak 20-year bond auction in the U.S. and Japan’s worst auction since 2012 serve as stark reminders that governments are not immune to market discipline, especially when debt and deficits spiral higher.

In the U.S., where Moody’s has joined the other major agencies in stripping the government of its AAA rating, the fiscal trajectory is alarming. Trump’s sweeping tax bill, which narrowly passed the House, is set to add $3.8 trillion to an already unsustainable $36.2 trillion national debt. Long-term Treasury yields reflect this stress, with the 30-year bond yield climbing to 5.09%, up 70 basis points since March.

This reflects a surge in term premium—the extra return demanded by investors for holding long-term debt—which now sits at an estimated 0.79% for the 10-year U.S. Treasury, still modest by historical standards but trending higher. Investors like Rong Ren Goh of Eastspring Investments are holding back on duration bets, citing an uncertain and fragile macro environment.

Global Pressure: From Tokyo to London

The warning is not limited to the U.S. Japan and the UK are experiencing parallel strains. Japanese Government Bond (JGB) yields have hit record levels, with 10-year yields rising to 1.55% and 30-year yields surging due to diminished support from the Bank of Japan (BoJ), which is now reducing its bond purchases. Fiscal stimulus measures ahead of the upcoming upper house election are compounding fears of further debt issuance.

Meanwhile, UK 30-year gilts have also reached their highest yields since the 1990s, echoing U.S. concerns over inflation and fiscal looseness. Both markets are now being challenged by what analysts call the return of “bond vigilantes”—investors demanding fiscal credibility in exchange for long-term financing.

A Shrinking Pool of Buyers

Foreign demand for U.S. Treasuries is faltering. The most recent 30-year auction saw the lowest participation from foreign investors since 2019, with just 58.88% of bonds taken up by non-U.S. buyers. Japan and China, historically major holders of U.S. debt, have been retreating as term premiums rise and uncertainty over U.S. policy mounts.

This diminished demand represents a fundamental shift. Governments are increasingly vulnerable to swings in investor confidence. As Robin Brooks of the Brookings Institution put it, “fiscal space is finite,” and the consequences of ignoring that limit are now becoming evident.

Germany’s Relative Resilience

Among G7 nations, Germany is emerging as an outlier. Despite committing to stimulus and facing similar upward pressure on yields, its debt-to-GDP ratio remains below 100%, helping it maintain investor confidence. During April’s global bond rout, German Bunds attracted safe-haven flows, highlighting their appeal amid broader fiscal degradation elsewhere.

Zurich’s Guy Miller noted that “despite the spending commitments, debt levels will remain relatively low and growth is likely to be boosted over the longer term” in Germany, suggesting it may be better positioned for the coming adjustment.

A New Era of Price Discovery

As bond markets reprice risk and term premiums, governments must confront a new reality—cheap debt is no longer a given. In a world shaped by political instability, protectionist trade wars, and runaway deficits, fiscal credibility is being re-evaluated in real time.

The process will be one of trial and error, as Japan’s Sumitomo Mitsui DS strategist Masayuki Kichikawa observed. The market is seeking equilibrium yields that reflect this new paradigm, and the message is clear: if fiscal risks continue unchecked, the cost of borrowing will rise—with far-reaching consequences for budgets, monetary policy, and global financial stability.

Source: Reuters

To stay updated on all economic events of today, please check out our Economic calendar

Risk Warnings and Disclaimers

You understand and acknowledge that there is a high degree of risk involved in trading. Following any strategies or investment methods may lead to potential losses. The content on the site is provided by our contributors and analysts for information purposes only. You are solely responsible for determining whether any trading assets, securities, strategy, or any other product is suitable for investing based on your own investment objectives and financial situation.

Add to Favorites

Gerik

Forex

Economic

Dollar Retreats Despite Elevated Yields and Hawkish Sentiment

The dollar index, which compares the greenback to a basket of six major currencies, hovered near 99.83 in early Friday trade, heading for a 1.1% weekly drop—its first decline since mid-April. The shift in momentum reflects growing discomfort with the U.S.’s long-term fiscal trajectory, particularly after Moody’s downgraded U.S. credit ratings last week and President Donald Trump’s $3.8 trillion tax bill passed the House.

Despite the 30-year U.S. Treasury yield remaining above 5%—near its highest level since 2007—the dollar has failed to benefit. This decoupling signals that rising yields are no longer interpreted as a bullish sign for the currency, especially when driven not by economic strength, but by expectations of sustained deficit spending and rising interest burdens.

Safe Havens Shine as Risk-Off Mood Prevails

The euro gained 0.21% to trade at $1.1303, poised for a weekly gain of 1.2%, while the yen held steady at 143.84 per dollar, also up 1.2% for the week. The Swiss franc rose to 0.8272 per dollar and is likewise set for a 1.2% weekly advance.

These moves underscore a shift in investor sentiment from yield-chasing to capital preservation. According to Pepperstone’s Chris Weston, the market has grown increasingly sensitive to the "term premium" embedded in long-dated bonds, reflecting fears over fiscal recklessness rather than optimism about growth.

Inflation in Japan Reinforces Yen Strength

Japan’s core inflation accelerated in April at its fastest annual pace in more than two years, raising speculation of another Bank of Japan rate hike by the end of 2025. With food inflation remaining sticky and new tariff-related shocks on the horizon, the Bank of Japan faces the difficult task of balancing domestic price pressures against global volatility. Meanwhile, Japanese government bond yields in the super-long end remained near record highs, though stabilized Friday.

Krishna Bhimavarapu from State Street Global Advisors noted that the firm inflation data “augments turbulence” in Japan’s bond markets and bolsters the case for gradual monetary tightening.

Commodity-Linked Currencies Hold Steady

Commodity-sensitive currencies such as the Australian and New Zealand dollars posted modest gains but remained largely range-bound. The Aussie traded at $0.6422, unmoved for the week, following the Reserve Bank of Australia’s rate cut to 3.85% on Tuesday amid signs of cooling inflation. The New Zealand dollar rose 0.2% to $0.59095, heading for a slight weekly gain.

These currencies remain vulnerable to broader risk sentiment and developments in China, their largest trading partner.

Market Awaits Senate Verdict on Trump’s Bill

While the House's passage of Trump’s "big, beautiful bill" has created near-term political clarity, the real test lies ahead in the Senate. As the debate unfolds, investors remain cautious. The weakening dollar, firm safe-haven currencies, and divergence in global bond markets suggest that confidence in U.S. fiscal management is eroding.

Should Senate revisions fail to address deficit concerns or if foreign buyers continue avoiding U.S. bonds, the greenback could face sustained downside pressure in the weeks ahead.

Source: Reuters

To stay updated on all economic events of today, please check out our Economic calendar

Risk Warnings and Disclaimers

Add to Favorites

Gerik

Economic

China–U.S. Trade War

Markets React to U.S. Fiscal Developments with Caution

Following the razor-thin passage of President Donald Trump’s sweeping tax and spending bill in the U.S. House of Representatives—a package forecast to inflate the national debt by $3.8 trillion over the next decade—markets across Asia opened Friday with restrained gains. The modest rally came after U.S. 30-year Treasury yields, which had surged past 5.16% earlier in the week, pulled back slightly to 5.037% as bargain-hunting stabilized the sell-off.

The initial passage of the bill removed some short-term political uncertainty, which National Australia Bank’s Ken Crompton noted helped ease "fear and panic" in the bond market. However, analysts stressed that long-term concerns about U.S. borrowing needs remain unresolved, especially given the persistent downgrade from Moody’s and no sign of a credible deficit-reduction strategy.

Asia Markets Show Resilience, Japan Outperforms

The MSCI Asia-Pacific index (excluding Japan) nudged 0.1% higher, although it is still on track for a 0.4% weekly loss—its first setback after five weeks of gains. Chinese blue chips and Hong Kong’s Hang Seng remained flat, reflecting cautious sentiment amid ongoing geopolitical tension and weak European PMI figures.

Japan’s Nikkei led regional gains with a 1% rise as fresh data showed core inflation in April accelerated at its fastest pace in over two years. That could revive speculation about a possible interest rate hike by the Bank of Japan later this year. Meanwhile, the 30-year Japanese government bond yield surged to 3.175%—its highest level in years—prompting closer monitoring from the central bank.

Currency and Crypto: Dollar Retreats, Bitcoin Soars

The U.S. dollar remained on the defensive, headed for a 1.2% weekly decline against a basket of major currencies. The euro rose 0.2% to $1.1302, poised for its first weekly gain after four consecutive weeks of losses. Fed Governor Christopher Waller’s remarks suggesting potential rate cuts later this year—depending on Trump’s tariff trajectory—added to the dollar’s weakness.

Bitcoin continued its record-setting rally, up 7% for the week to $111,524 after touching an all-time high of $111,965 on Thursday. The cryptocurrency’s strength reflects investor appetite for alternative assets amid growing concerns over sovereign debt and currency volatility.

Oil Weakens, Gold Holds Steady

Oil extended its decline for a fourth consecutive session. U.S. crude dropped 0.7% to $60.76 a barrel, down 2.7% for the week, as expectations grew that OPEC+ may increase production. Brent crude fell 0.6% to $64.03 per barrel.

Gold prices held firm around $3,292 an ounce and are set for a 2.8% weekly gain, benefiting from both safe-haven flows and weaker dollar sentiment.

Volatility Likely to Persist

Despite signs of stability in Treasury markets, the outlook remains clouded by structural fiscal concerns in the U.S., uncertain Federal Reserve policy, and the geopolitical reverberations of Trump’s aggressive tariff agenda. With market participants now eyeing next month’s G7 leaders’ summit and the Senate’s handling of the tax bill, global volatility is unlikely to fade soon.

For Asia, Japan’s inflation dynamics and the Bank of Japan’s policy stance could set the tone for regional risk appetite, while China’s lackluster recovery and U.S.-China trade recalibration will continue to weigh on sentiment.

Source: Reuters

To stay updated on all economic events of today, please check out our Economic calendar

Risk Warnings and Disclaimers

Add to Favorites

Gerik

Economic

China–U.S. Trade War

Glossing Over Tensions: Tariffs Omitted from G7 Communique

In their latest meeting in Banff, Canada, G7 finance ministers and central bank governors avoided direct reference to U.S. President Donald Trump’s aggressive tariff regime, despite its disruptive impact on global trade and supply chains. While Canadian Finance Minister François-Philippe Champagne insisted that tariffs were discussed “frankly,” their absence from the final communique reveals deep-seated rifts within the group.

The G7’s avoidance of explicit tariff criticism contrasts sharply with its 2018 “G6 plus one” schism over Trump-era steel and aluminum tariffs, suggesting that while unity is being projected, fractures remain.

Focus on ‘Non-Market Practices’: China Indirectly Cited

The communique emphasized addressing “non-market policies and practices” that undermine international economic security—language widely interpreted as a rebuke of China’s state-led economic model. However, it stopped short of naming China explicitly. The G7 called for strengthened coordination to combat harmful economic strategies, reinforce supply chain resilience, and address customs evasion through “de minimis” shipping loopholes exploited by firms like Shein and Temu.

This marks a tactical shift by the G7 to confront China's global trade tactics without provoking diplomatic rupture ahead of the June leaders’ summit in Kananaskis.

Weakened Language on Ukraine Reflects Trump’s Influence

One of the most notable changes was the G7’s revised stance on the Ukraine war. Previous statements labeled Russia’s invasion as “illegal and unjustified,” but the Banff communique described it more cautiously as a “continued brutal war.” This linguistic retreat aligns with Trump’s softer posture toward Russia and efforts to initiate peace talks, drawing criticism for appearing to dilute collective Western resolve.

Despite the softened tone, G7 members reaffirmed that countries supporting Russia’s war effort will be excluded from Ukraine’s reconstruction—a subtle warning aimed at China and Iran.

Divided Over Oil Cap Policy and Sanctions Escalation

Although G7 ministers discussed tightening sanctions on Russia, including a proposed reduction of the $60-per-barrel price cap on Russian oil exports, no agreement was reached. The U.S., under Treasury Secretary Scott Bessent, reportedly expressed skepticism about the need for a lower cap, citing already depressed Russian crude prices.

Bessent’s reserved presence—skipping a press conference and offering only one comment to media—reinforced perceptions of a more cautious U.S. approach. His earlier absence from the G20 meeting in South Africa had caused concern, making his low-profile participation in Banff all the more conspicuous.

Economic Balancing Act: Managing Trade, Inflation, and Stability

Beyond geopolitics, the G7’s communique emphasized the need to correct “excessive imbalances” in the global economy. However, the lack of concrete policy tools or targets indicates that the bloc is still grappling with how to respond to rising protectionism, inflationary risks, and currency volatility.

Canada, currently bearing the brunt of Trump’s aluminum and steel tariffs, continues to seek relief, but no progress was reported on bilateral tariff elimination.

Stage Set for G7 Leaders Summit

With Trump confirmed to attend the upcoming June summit, the Banff finance meetings appear to have paved the way for delicate negotiations that must balance Trump’s nationalist policies with G7 unity. Whether that unity can endure under mounting trade and geopolitical tensions remains to be seen.

The G7’s carefully worded communique reveals a group trying to present solidarity while papering over significant divides on tariffs, Ukraine, and China. As the global economy enters a period of fragmentation, the G7 must choose between confrontation and compromise—without losing credibility or cohesion.

Source: Reuters

To stay updated on all economic events of today, please check out our Economic calendar

Risk Warnings and Disclaimers

Add to Favorites

Gerik

Economic

China–U.S. Trade War

Tariffs Spark Industry-Wide Alarm Across Japan's Automotive Backbone

At Kyowa Industrial in Takasaki, Japan, President Hiroko Suzuki confronts a dilemma reminiscent of her father’s challenges during the 1980s U.S.-Japan trade disputes. Now, however, the Trump-era tariffs—far more sweeping in scope—threaten not just automotive exports but also her company’s nascent medical device ventures.

Suzuki’s company, which employs 120 and supplies major automakers and even Formula One teams, is not a direct exporter to the U.S. Still, she's bracing for cost-cutting demands from manufacturers trying to absorb new tariff burdens. “This is going to be bad,” she recalled thinking upon the announcement.

Supplier Squeeze: Tariff Fallout Moves Down the Chain

Japanese auto suppliers, especially smaller Tier 2 and Tier 3 firms, are under intensifying pressure as the Trump administration's tariffs ripple through the global auto supply chain. Toyota, Nissan, and Ford have sent cautious letters to suppliers, requesting cooperation without committing to firm support. Nissan, for instance, said it would absorb part of the tariff costs for four weeks but might seek reimbursement later.

Toyota’s letter emphasized goodwill and encouraged suppliers to propose mitigation strategies, while Ford continues to assess exposure. Yet uncertainty remains. Major suppliers like Denso have withheld earnings guidance for the year, citing volatile trade conditions.

Kyowa’s Strategic Shift Undermined

Suzuki had begun steering Kyowa toward diversification in 2016, focusing on neurosurgery tools to offset the long-term decline in combustion-engine parts due to the electric vehicle (EV) transition. After breaking into the U.S. medical device market last year, she found those products also ensnared by new tariffs.

Now, Kyowa is exploring alternative growth markets in Asia, including Singapore and Hong Kong. Despite these headwinds, automotive sales still account for roughly 70% of its 2 billion yen (~$14 million) annual revenue.

Systemic Industry Risk: From Factory Floors to Macroeconomics

Japan’s once-dominant position in global manufacturing has waned, leaving its economy highly reliant on auto exports, especially to the U.S. The new tariffs, in conjunction with rising Chinese competition and the global shift to EVs, expose structural weaknesses in Japan’s industrial model.

Economists like Sayuri Shirai of Keio University warn of intensified pressure on small and mid-sized suppliers, many of which operate on slim margins and within aging regional economies. These firms are already threatened by demographic decline and shrinking labor pools. Consolidation may be the only path to resilience.

Policy, Negotiation, and Geopolitical Stakes

Japan’s government views the tariffs as a “national crisis.” Trade envoy Ryosei Akazawa is in Washington for a third round of negotiations, pushing for full tariff elimination. Prime Minister Shigeru Ishiba’s cabinet is weighing emergency economic measures, but analysts believe Tokyo will need more than fiscal stimulus—it must rethink industrial strategy.

The Trump administration, meanwhile, has declined to comment on specifics but reiterated its desire for "fair and balanced" trade relations aligned with U.S. national security.

A Cultural and Strategic Crossroads

Suzuki's story is emblematic of the deep personal and institutional ties between Japan and the U.S. Her affection for American culture—Aerosmith concerts, English-language fluency, and education in the U.S.—adds a human dimension to what is increasingly a geopolitical standoff.

“If Japan and the U.S. can’t find a solution, it’s not just business that suffers. It’s trust,” she said.

A Defining Moment for Japan’s Auto Industry

As automakers and governments navigate this turbulent era, Japan’s auto parts industry must undergo structural transformation or risk irrelevance. For firms like Kyowa, survival now hinges on agile adaptation—whether through diversification, digitalization, or relocation—and strong support from automakers and policy leaders alike.

The road ahead is steep, but the decisions made now will define the sector’s fate for decades to come.

Source: Reuters

To stay updated on all economic events of today, please check out our Economic calendar

Risk Warnings and Disclaimers

Add to Favorites

Gerik

Political

A Targeted Blow with Broader Implications

President Donald Trump's administration escalated its campaign against Harvard University on Thursday by suspending the school's ability to enroll new international students. The move, framed as a disciplinary measure for Harvard’s alleged failure to address antisemitism and harassment on campus, cuts deep into the university’s financial and academic lifeblood—and signals a potential shift in federal policy toward higher education more broadly.

Kristi Noem, the administration’s Homeland Security adviser, confirmed in a Fox News appearance that other universities, including Columbia, are also under review: “This should be a warning to every other university to get your act together.”

The Financial Domino Effect

International students, who comprised 27% of Harvard’s total student body in 2025 (6,800 out of approximately 25,000), are typically full-tuition payers. This demographic plays a key role in cross-subsidizing domestic students who rely on scholarships or need-based aid. The impact extends far beyond Harvard.

According to federal data, at least 43 U.S. colleges have even higher proportions of international students. Columbia University, now facing similar scrutiny, had a 39% international student share in 2023. At 246 other U.S. institutions with over 1,000 students, at least 10% are from abroad.

Chuck Ambrose, former president of the University of Central Missouri, noted that “foreign tuition often props up the entire business model of U.S. higher ed,” especially in public and mid-tier private institutions.

A Sector Already Under Fiscal Strain

Harvard has already lost nearly $3 billion in federal research contracts and grants in recent weeks, compounding the financial damage. These freezes stem from investigations tied to campus unrest and alleged noncompliance with federal guidelines. As Professor Robert Kelchen of the University of Tennessee put it: “It’s just another financial hit on top of several hits that have already come for big research universities.”

Trump’s approach not only undermines elite institutions’ reputations but also hampers their capacity to maintain global competitiveness in science, medicine, and technology—areas traditionally buoyed by foreign graduate students and research scholars.

As of now, student financial aid remains untouched, but insiders say it may not be off the table should the administration pursue deeper structural reforms.

Higher Ed Enters the Political Crosshairs

Critics view this as a politically motivated assault on liberal bastions of academia, rather than a good-faith effort to combat campus misconduct. In restricting international enrollment and research funds, the administration risks eroding the global prestige and operational capacity of institutions that attract some of the brightest minds worldwide.

While the Department of Homeland Security has not published a formal list of targeted schools, industry experts suggest that institutions with large international populations and visible campus protests are most vulnerable. These include Columbia, Stanford, NYU, and UC Berkeley.

A Chilling Message to Universities

The Trump administration’s suspension of Harvard’s foreign student enrollments is not an isolated action—it’s a strategic pivot that ties immigration, education, and political ideology into one combustible package. If replicated, the measure could undermine the financial resilience and global standing of the entire U.S. higher education system.

In a sector already rattled by reduced federal support and heightened scrutiny over campus politics, the loss of international students may prove to be the most disruptive force yet. For now, the message is clear: no university is untouchable.

Source: Reuters

Risk Warnings and Disclaimers

Add to Favorites

FastBull Featured

Daily News

[Quick Facts]

1. Trump amasses $600 million war chest, vowing to secure both Houses in midterms.

2. U.S. not yet convinced to accept G7 proposal to lower Russian oil price cap

3. UK consumers turn a little less gloomy in May

4. Tariff uncertainty fuels U.S. lumber price swings, raising housing costs.

5. Japan's key inflation gauge hits fastest pace in two years.

6. U.S. mortgage rates approach 7%.

7. U.S. House passes Massive Tax Cut Bill, fueling debt concerns.

8. G7 draft communiqué pledges tackling "Excessive Imbalances" in global economy.

9. U.S. Existing-Home sales drop, marking worst April since 2009.

[News Details]

Trump amasses $600 million war chest, vowing to secure both Houses in midterms

According to reports, three informed sources revealed that U.S. President Trump has raised at least 600 million U.S. dollars in political donations for the midterm elections. Insiders disclosed that Trump’s ultimate goal is to a mass 1 billion or more and gain control of both the Senate and the House of Representatives by November next year. Trump is eager to reverse the trend of Republican candidates frequently being outpaced by Democrats and aims to maximize his presidential influence. Any remaining funds after his term could help him maintain significant sway over the Republican Party, solidifying his position as the most influential decision-maker and potential benefactor in 2028 and beyond.

U.S. not yet convinced to accept G7 proposal to lower Russian oil price cap

A European official stated on Thursday that the U.S. has "not yet been convinced" to accept the G7’s proposal to lower the price cap on Russian crude oil. The EU has proposed reducing the cap to a reference level of 50 U.S. dollars/barrel. The price cap, initially established in 2022, aiming to curb Russia's oil revenue by prohibiting transactions involving Russian crude sold above 60 U.S. dollars/barrel from using Western-provided insurance services. Ukraine has been pushing aggressively for the cap to be lowered to 30 U.S. dollars/barrel. The unnamed European official noted that the U.S. Treasury delegation at the meeting argued that oil prices are already declining and harming Russia’s interests. However, the official added that the U.S. remains open to further discussions on the matter.

UK consumers turn a little less gloomy in May

A survey released on Friday showed a modest improvement in UK consumer confidence in May, likely reflecting lower interest rates and easing global trade tensions. Market research firm GfK's consumer confidence index rose to -20 in May from -23 in April, led by more optimism among households over the outlook for their finances and the wider economy. Neil Bellamy, Client Strategy Director at GfK, suggested that the Bank of England's rate cut on May 8th and a partial de-escalation of the U.S.-led trade war under President Trump may have provided some relief. "Those dangers - especially the issue of inflation – have not disappeared but the consumer mood in the UK does appear to have improved a little," Bellamy said. Nonetheless, the reading remained somewhat below the survey's long-run average of -11.

Tariff uncertainty fuels U.S. lumber price swings, raising housing costs

Despite being spared from the U.S. government's proposed retaliatory tariffs in April, the American lumber industry remains uneasy. On one hand, extreme price volatility has heightened uncertainty; on the other, plans to more than double existing countervailing and anti-dumping duties on Canadian lumber have deepened concerns. By April 2025, softwood lumber prices had surged 23% year-on-year. Fears of higher tariffs, coupled with sawmill closures across North America, also drove a sharp rise in lumber futures in Q1 2025.

Japan's key inflation gauge hits fastest pace in two years

Japan's key inflation indicator accelerated at its fastest rate in two years, driven by rising food and energy costs, adding to policymakers' challenges amid growing economic uncertainty. Data released Friday showed consumer prices excluding fresh food rose 3.5% year-on-year in April, up from 3.2% in March and slightly above economists' 3.4% forecast. Another measure excluding energy costs climbed 3.0%, hitting that level for the first time in over a year. Energy prices jumped 9.3% as the government phased out gas and electricity subsidies in March. The ruling party is now considering reinstating subsidies as early as June and taking steps to lower gasoline prices.

U.S. mortgage rates approach 7%

U.S. mortgage rates have climbed to their highest level in three months. According to a Freddie Mac survey of lenders, the average rate for a standard 30-year fixed mortgage rose to 6.86%, up from 6.81% a week earlier. Turbulence in the bond market has pushed yields higher as investors fret over inflation, government budget deficits, and Moody's recent downgrade of the U.S. credit rating. Mortgage rates typically track the yield on the 10-year Treasury note. Bob Broeksmit, CEO of the Mortgage Bankers Association, said the group expects rates to "remain volatile" in the coming months but stay within a range of 6.6% to 7%. Rising rates, elevated home prices, and economic uncertainty continue to weigh on housing market activity during the critical spring selling season. Existing-home sales declined for the second straight month in April.

U.S. House passes Massive Tax Cut Bill, fueling debt concerns

The Republican-controlled U.S. House of Representatives narrowly passed a sweeping tax and spending bill on May 22nd, despite warnings from the Committee for a Responsible Federal Budget (CRFB) that it would dramatically increase federal debt. The bill cleared the House by a 215-214 vote, with all Democrats and two Republicans opposing it and one Republican abstaining.

The legislation extends corporate and individual tax cuts originally enacted under President Trump's 2017 tax law during his first presidency, introduces new tax breaks for tips and auto loans, boosts defense spending, and allocates additional funds to curb illegal immigration. It also repeals several green energy incentives championed by Democratic former President Biden while tightening eligibility requirements for Medicaid and food assistance programs to cut federal spending.

The CRFB has raised serious concerns about the bill, previously calling the House's budget framework " is nothing short of a fiscal failure." The group estimates the legislation would add over $3 trillion to the national debt and create a "fiscal cliff" when temporary tax cuts and spending policies expire—potentially costing trillions more if extended.

G7 draft communiqué pledges tackling "Excessive Imbalances" in global economy

A draft communiqué cited by sources on Thursday revealed that finance ministers and central bank governors from the Group of Seven democracies papered over their differences on Thursday, pledging to address "excessive imbalances" in the global economy. The finance ministers and central bank governors, who met in the Canadian Rocky Mountains, said there was a need for a common understanding of how "non-market policies and practices" undermine international economic security. The report also indicated that the G7 communique called for an analysis of market concentration and international supply chain resilience. "We agree on the importance of a level playing field and taking a broadly coordinated approach to address the harm caused by those who do not abide by the same rules and lack transparency," it said. The G7 finance chiefs condemned what they called Russia's "continued brutal war" against Ukraine and said that if efforts to achieve a ceasefire failed, they would explore all possible options, including "further ramping up sanctions."

U.S. Existing-Home sales drop, marking worst April since 2009

Hampered by persistent affordability constraints, U.S. existing-home sales unexpectedly fell to a seven-month low in April, signaling a sluggish start to the critical spring housing season. Data released Thursday by the National Association of Realtors (NAR) showed sales declined 0.5% to an annualized rate of 4 million units, below the median forecast in a Bloomberg survey and the weakest April performance since 2009.

[Today's Focus]

UTC+8 14:00 UK April Retail Sales MoM

UTC+8 20:30 Canada March Retail Sales MoM

UTC+8 22:00 US April New Home Sales (Annualized)

UTC+8 22:30 Speech by Bank of England Chief Economist Pill

Risk Warnings and Disclaimers

Add to Favorites

Recent Searches

Top Searches

Markets

News

Analysis

User

24/7

Economic Calendar

Education

Data

Global Bond Selloff Sends Clear Warning: Governments Must Pay More to Borrow Long-Term

A Market Rebellion Against Fiscal Complacency

Global Pressure: From Tokyo to London

A Shrinking Pool of Buyers

Germany’s Relative Resilience

A New Era of Price Discovery

Source: Reuters

Dollar Weakens as U.S. Fiscal Fears Trigger Flight to Safe-Haven Currencies

Dollar Retreats Despite Elevated Yields and Hawkish Sentiment

Safe Havens Shine as Risk-Off Mood Prevails

Inflation in Japan Reinforces Yen Strength

Commodity-Linked Currencies Hold Steady

Market Awaits Senate Verdict on Trump’s Bill

Source: Reuters

Cautious Optimism in Asian Markets as Treasuries Stabilize Amid U.S. Debt Worries

Markets React to U.S. Fiscal Developments with Caution

Asia Markets Show Resilience, Japan Outperforms

Currency and Crypto: Dollar Retreats, Bitcoin Soars

Oil Weakens, Gold Holds Steady

Volatility Likely to Persist

Source: Reuters

G7 Communique Sidesteps Tariffs, Emphasizes Global Economic Imbalances and Russian Sanctions

Glossing Over Tensions: Tariffs Omitted from G7 Communique

Focus on ‘Non-Market Practices’: China Indirectly Cited

Weakened Language on Ukraine Reflects Trump’s Influence

Divided Over Oil Cap Policy and Sanctions Escalation

Economic Balancing Act: Managing Trade, Inflation, and Stability

Stage Set for G7 Leaders Summit

Source: Reuters

U.S. Tariffs Hit Japanese Auto Suppliers Hard, Forcing Rethink of Long-Standing Industry Model

Tariffs Spark Industry-Wide Alarm Across Japan's Automotive Backbone

Supplier Squeeze: Tariff Fallout Moves Down the Chain

Kyowa’s Strategic Shift Undermined

Systemic Industry Risk: From Factory Floors to Macroeconomics

Policy, Negotiation, and Geopolitical Stakes

A Cultural and Strategic Crossroads

A Defining Moment for Japan’s Auto Industry

Source: Reuters

Trump's Crackdown on Harvard's Foreign Students Sparks Sector-Wide Alarm

A Targeted Blow with Broader Implications

The Financial Domino Effect

A Sector Already Under Fiscal Strain

Higher Ed Enters the Political Crosshairs

A Chilling Message to Universities

Source: Reuters

May 23rd Financial News

[Quick Facts]

[News Details]

[Today's Focus]

Risk Disclosure