Daily Brief Macro: Why Interest Rates Are Shooting Up All Around the World and more

• Markets are still active, with major moves in rates and currency
• There are conflicting signals in the bond market, with concerns over inflation and the economy slowing down
• Steven Englander from Standard Chartered discusses the dynamics of JGB and UST yields

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• SLR reform is a high priority for US banking regulators, with potential changes to how Treasuries are calculated
• The timeline for SLR reform is still in the early stages, with regulatory processes and personnel confirmations needing to be completed first
• Potential scenarios for SLR reform include carving out reserves and dealer holdings of Treasuries from the SLR denominator to address liquidity and market functioning concerns

This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only.

• As the earnings season draws to a close, we look at Asian markets’/sectors’ EPS estimate progression during the reporting season and earlier. Specifically, we search for upward or downward inflections.
• Korea and Taiwan had the strongest EPS upgrades during this reporting season, despite the trade uncertainties. Philippines, Indonesia, Malaysia also had decent upgrades. HK/China and India continue to be downgraded.
• Korean and Taiwanese technology, Korean industrials, HK Technology Services had strong upgrades. So did Singapore and Philippines financials, and Thailand Communications – the latter two with a long upgrade history.

• Jitters over the sustainability of US fiscal easing knocked equities and the dollar over the past week. Dovish BoE pricing was pared back further towards our contrarian call.
• UK inflation exceeded our already elevated forecast, while the manufacturing PMIs were broadly resilient again in May. UK retail data were also sensationally strong.
• Next week is relatively quiet and shortened by a bank holiday. Flash inflation for some euro member states, updated US GDP data, and the RBNZ decision are our highlights.

• Disappointing industrial production and consumer spending data from China, along with stagnant new housing prices, dampened investor sentiment.
• Steel consumption remains robust even amid China’s property sector woes, as elevated mill activity and profitability at 60% of blast-furnace plants highlight the market’s core strength.
• On the technical front, current prices remain above the 21-day and 50-day moving averages, suggesting a positive short-to-mid-term trend.

• Slipping butadiene costs impact prices of SBR, BR and NBR  
• Near steady domestic production fails to match rise in consumption  
• EPDM, Silicone Rubber prices near stable since February  

• Intel / In Depth: Intel’s China partners expect new chief to usher in growth 
• Exporters /In Depth: China’s export engine reboots cautiously after tariff truce
• Fraud /: China’s senior living scandal deepens as elder care giant faces fraud probe