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Recent Editions
Risk Channel
North America
U.S. Treasury Secretary Scott Bessent has pushed back against concerns over rising government debt and bond market turbulence, arguing that the U.S. bond market has been the best-performing among global peers this year and that continued economic growth puts the country in a stronger position than many other advanced economies. The benchmark 10-year Treasury yield ended Friday at around 4.73%, with Mr. Bessent attributing recent upward pressure on yields partly to higher energy prices and inflation stemming from the Iran conflict, which he expects to ease over time. He has also defended plans to at least double buybacks of longer-dated Treasury debt to $4bn per operation from September 10th, saying the measure is designed to reduce volatility and prevent disorderly market moves, rather than influence bond prices.
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Risk Channel
UK/Europe
Germany's IG Metall union has warned that its members will resist attempts by Volkswagen to undo a previously agreed restructuring package, although it stopped short of threatening strikes ahead of a critical board meeting scheduled for the end of this week that will see a vote on what currently are three rival restructuring proposals. The automaker's biggest overhaul to date could include plant closures, the carve-out of some units and 50,000 further layoffs. "I can only warn you: If the board tries to call this agreement into question again, then the factory floors will be up in arms at all our sites," Thorsten Groeger told workers in Hanover, one of the sites that faces closure. "We will oppose it with all our might," said the representative for Germany's largest union.
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