August 24
Mkts 2Y 10Y 30Y
S&P is down 0.20% | 3:23
Gold Climbs 0.78% to $4,643
Oil Drops 2.16%
European natural gas prices up almost 4%
Canadian dollar is down only 90 pips
Curve Flattens. 2Y is yield is higher by 0.6bp
10Y is lower in yield by 2.9bp
News
The yield on the 10-year US Treasury note eased to 4.7% on Monday, tracking lower crude prices, but remained close to the 20-month high of 4.75% reached in the previous session. Persistent concerns over wider fiscal deficits and heavy corporate debt issuance continued to put upward pressure on long-term yields. The US Treasury said it would double liquidity-support buyback operations for longer-dated bonds.
CNBC reported that Treasury Secretary Scott Bessent could use nearly $1 trillion from the Treasury’s General Account to help fund the buybacks rather than issue short-term bills, raising concerns over further dollar weakness.
On the geopolitical front, the US expanded secondary sanctions targeting entities and countries maintaining business ties with Iran. Bessent warned that a major financial institution could face sanctions this week and suggested China would not be exempt.
Dollar Holds Near Three-Month Low as Risks Persist
, trade tensions with Canada intensified after Washington imposed 50% tariffs on Canadian goods, with Ottawa pledging dollar-for-dollar retaliation. President Donald Trump also said tariffs on cars, trucks, auto parts and steel would rise to 50% from January 1, 2027.
Gold Holds Near Three-Month High
Bullion gained more than 5% last week after the buyback plan pushed the dollar to multi-month lows. Markets are now focused on the July PCE price index due Wednesday and Fed Chair Kevin Warsh’s speech at the Jackson Hole Symposium on Friday for clues on the interest-rate outlook. Traders are pricing in a more than 40% chance of a rate hike in September, according to CME FedWatch.
Iran
US launches ‘Operation Economic Outcast’ against Iran
Iran had the right to target any location used to launch attacks against it
AlJaz
US announces new sanctions against Iran, asks allies to join
Iran's Civilian Leaders Call For Peace Amid Crippling U.S. Blockade | Zero
NYP
Iran blacklists 45 tankers in Strait of Hormuz, threatens to fine and confiscate cargo
News
Chicago Fed National Activity Index edged down to -0.08 from 0.06 prior
Diesel is $5.613 vs $5.445 a week ago. In California, the average is $7
Iran’s rial falls past 2 million to dollar to record low
Hedge Funds’ Cash Treasury Holdings Reach $2 Trillion | Clima
The Warsh Speech at Jackson Hole on Friday
Wall Street will primarily want to see whether Warsh tries to talk the hawks out of their tightening bias | RIA
Data: Personal income and spending, PCE prices, durable goods, and annual revision to NFP
Earnings by Nvidia on Wednesday
Here Is Why Friday's Bigger Beef Move Is Right Too | A.Muse
Friday’s action is limited in quantity, since 300,000 metric tons is on the order of 2% of annual US beef consumption. It is time-limited, expiring in 90 days. It is limited in kind, applying to beef bound for the grinder rather than to the steaks, roasts, and briskets that define the premium market American ranchers actually serve. And it is disciplined in price, since the president has secured a commitment that the imported product will sell 25% below current market prices, which means the benefit is designed to land at the retail case rather than in a middleman’s margin. This is not an open border for beef.
TopWar
Iran is not joking: the US has been forced to withdraw its air tankers from a base in Bulgaria. Iran made it clear that if US military aircraft remained in Bulgaria, the country's territory would become a legitimate target, and Sofia would be considered complicit in the aggression against the Islamic Republic. The warning worked.
ran vows to target 'source and origin' of any aggression in warning to EU state | Cradle
Kunst
We act all this out these days with Trump and Trumpism and the Left with its Leftism.
Peak Digest
Today’s Digest covers VW job cuts, tungsten shortages, WHO flu rules, polio theories, Israel strikes in Lebanon/Gaza, Iran sanctions, GOP races, Musk midterm spending, and Colorado River cuts.
Debt Rattle
* Putin Hints At ‘Catastrophic Scenario’ For Ukraine
* Bill Maher admits the Democrat Party isn't fond of Jews
* Hasan Piker Mocks the Murdered Charlie Kirk to Cheering Crowd
Woman Who Strangled Her Three Children Surges to Lead in 2028 Democratic Presidential Polls | Genes
CTH
A Direct and Confrontational U.S-Canada Trade War is Now a Reality
The news is exceptionally bad for Canada. Worse than bad. The divide between the two economies and trade policy is just too big. There was no way for both sides to close the gap without major structural economic changes within Canada.
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