Financial Markets Daily Report 29 September 2021
Markets suffered a risk-off session amid concerns over the debt ceiling in the U.S. Volatility jumped and stocks were lower across advanced and emerging economies as Republicans blocked a Democratic move to raise the debt limit. U.S. Treasury Secretary Janet Yellen warned that her department will run out of cash around October 18.
- Markets suffered a risk-off session amid concerns over the debt ceiling in the U.S. Volatility jumped and stocks were lower across advanced and emerging economies as Republicans blocked a Democratic move to raise the debt limit. U.S. Treasury Secretary Janet Yellen warned that her department will run out of cash around October 18.
- In FX markets, safe-haven flows sent the USD higher against most currencies. In fixed-income markets, the yield on 10-year U.S. sovereign bonds jumped to a 3-month high and posted a +22bp rise over the last seven days. In Europe, sovereign yields nudged up across core and peripheral countries.
- On the data front, U.S. consumer confidence fell to a seven-month low in September according to the Conference Board's index (109.3 points). In reference to inflationary pressures from supply bottlenecks, ECB President Christine Lagarde warned against not overreacting "to transitory supply shocks that have no bearing on the medium term".