3rd January 2024

  • Treasuries Start Year on Back Foot as Global Rate-Cut Bets Ease

Yields on US, European government bonds rise at least nine bps

Move reflects doubts over scope of interest-rate cuts in 2024

https://blinks.bloomberg.com/news/stories/S6NI6VDWX2PS

  • Fed’s Balance Sheet Leaps Into Spotlight After Repo Volatility

Use of reverse repo facility fell by $313.6 billion on Tuesday

Traders look to tool for clues on quantitative tightening path

https://blinks.bloomberg.com/news/stories/S6NCK9T0AFB4

  • Oil Holds Decline With Risk-Off Tone Countering Red Sea Flare-Up

Traders rein in bets on scale of interest-rate reductions

Iran’s dispatch of warship challenges US dominance in waterway

https://blinks.bloomberg.com/news/stories/S6O8PPT1UM0W

  • Iran’s Red Sea Power Play Raises Fears of Trade Disruption (3)

Tehran dispatched frigate as US-led task force battles Houthis

Attacks by Iran-backed Houthis have already disrupted shipping

https://blinks.bloomberg.com/news/stories/S6O2UUT1UM0W

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