World News Wire

BofA: European Bond Investors Regret Chasing Rally as Selloff Hits

Bank of America said investors who piled into European and UK government bonds in recent months may be regretting their decisions after a sharp selloff. A BofA survey showed that despite turning more pessimistic on rate outlooks, respondents increased and held long-duration bond positions since early August. Strategist Ralf Preusser noted the divergence between duration exposure and investor views in euro and sterling bonds hit a record high, with buyer regret evident, helping explain recent selloffs in UK gilts and German Bunds.

US 10-Year Treasury Yield Nears 5%, Hits Highest Since Oct 2023

On Sept 11, the US 10-year Treasury yield rose to 4.957%, the highest since Oct 23, 2023, approaching the 5% threshold. The yield, which reflects the interest rate investors demand for long-term US government debt, has climbed amid expectations of higher future rates or inflation.

US short-term rate futures fall as market bets on Fed rate hike in September

Short-term interest rate futures in the US declined after the release of inflation data, as traders increased bets that the Federal Reserve will raise rates in September.

Analysis: Bond market turmoil may force wealthy Americans to accept higher taxes

UBS Buys Back $7.9B in Credit Suisse Debt, Biggest Shrinkage Since Takeover

UBS has completed a $7.9 billion buyback of old Credit Suisse debt, its largest reduction of inherited liabilities since the 2023 acquisition. The bank's legacy debt has fallen to about $29 billion from roughly $90 billion at the time of the deal. UBS said the move is part of active management of its funding and total loss-absorbing capacity, and raised the buyback cap twice to $5.9 billion.

iShares IGIB vs MUB: Corporate Bond ETF Offers Higher Yield, but Muni Bond ETF May Win After Tax

The Motley Fool compares two iShares bond ETFs: IGIB (investment-grade corporate bonds, 5-10 year maturity) yields 4.9% with a 0.04% expense ratio, while MUB (municipal bonds) yields 3.2% with a 0.05% expense ratio. However, MUB's income is generally exempt from federal taxes, so for investors in the 32% or 37% tax bracket holding bonds in a taxable account, MUB's after-tax return can match or exceed IGIB's.

US Treasury Secretary Scott Bessent warns traders not to bet against his yen-boosting plan: 'I am the house now'

Speaking at an event in Texas on Sept. 8, U.S. Treasury Secretary Scott Bessent said he has 'asymmetric information' about what the Bank of Japan and Japanese policymakers will do, so traders should not bet against his plan to bolster the yen. 'I am the house now,' Bessent said. The U.S. bought an estimated billions of yen in July, its first such intervention in 30 years, after the yen hit a four-decade low. As of Sept. 8, the yen had recovered to ¥153.76 per dollar from ¥163 in July.