Symbolic imageUS yields at crisis-era highs as Fed's Hammack floats rate rises
Bloomberg reported that the Fed's Hammack floated 'some number' of rate increases on Monday. US long-term yields are at levels last seen in the financial crisis.
Thirty-year Treasuries have yielded above 5 percent since June, the first sustained run at that level since the 2007 financial crisis, FAZ reported on Monday, 10 August. China and other foreign creditors are pulling back as buyers despite the higher returns, and Japan has overtaken China as the largest foreign holder of US debt, though the weak yen casts doubt on that demand. Kevin Warsh, Fed chair since 22 May, has resisted Trump's calls for cuts: both meetings he has chaired left the target range at 3.50 to 3.75 percent.
Weak jobs, sticky prices
The US lost 23,000 non-farm jobs in July instead of the 89,000 gain expected, the Labor Department reported on Friday, 7 August, and earlier months were revised down. July consumer prices follow this week after a 3.5 percent June reading; DWS economist Christian Scherrmann warns of a growing risk of a 'stagflation-like situation'.
Gold climbs with rate bets
The WSJ reported precious metals higher at the start of the week and gold gaining on Tuesday on shifting Fed expectations and central-bank buying.
Trump plays down Warsh talks
Bloomberg reported on Monday that Trump downplayed his talks with Warsh amid doubts over Fed independence.
Other opinions
FAZ ties the high yields to retreating foreign creditors and stagflation risk, while the WSJ attributes Monday's rise to Middle East tensions and inflation fears.