The Deficit Is Unsettling Bond Traders. Here’s How That Affects the Economy.
The trade war has calmed down, but rising government borrowing costs pose a new worry.
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Weak Auction of Government Debt Jolts Markets
The Dow industrials slide, and the 30-year Treasury yield surges above 5%, its highest since 2023.
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Stocks tally worst session in a month as weak bond-market auction has investors wondering how U.S. will manage its debt
Investors have been warily eyeing rising Treasury yields since the start of May, with some fretting that the latest jump in borrowing costs could soon start hurting stocks.
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Trump Teases Possibility of Taking Fannie Mae and Freddie Mac Public
Talks about ending government control of the mortgage giants have been under way since at least last year.
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U.S., Canada Senior Officials Laud Productive Talks on the Sidelines of G-7
U.S. Treasury Secretary Scott Bessent and Canadian Finance Minister Francois-Philippe Champagne met on the sidelines of the G-7 as the two countries try to tamp down trade tensions that have roiled the bilateral relationship for months.
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U.K. Consumer Sentiment Lifts From Post-Trump-Tariff Lows, BRC Says
Consumer confidence in the U.K. picked up in May as the outlook for trade improved and data showed the economy grew more than expected at the start of the year, according to a monthly survey.
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Spike in Policy Uncertainty Threatens Financial Stability, ECB Says
The central bank also warned that investors may be too complacent about the threats posed by recent rises in tariffs.
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Bloomberg Outage Hits Traders, Disrupts Government-Bond Auctions
The terminal, an essential tool for professional investors, suffered an outage that disrupted trading and some offerings of government bonds.
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U.S. Crude Oil Stockpiles Rise for Second Straight Week
U.S. crude oil inventories rose by 1.3 million barrels last week, while stocks of gasoline and diesel increased amid higher refinery capacity use, according to data released by the EIA.
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U.K. Inflation Jumps, Reinforcing Bank of England’s Caution
Consumer prices rose 3.5% in April compared with a year earlier as businesses raised their prices in response to higher payroll taxes and utility charges.
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Mary Daly and Other Fed Presidents Warn Don’t Expect Recession or Rate Cuts
The three presidents all emphasized the limits of backward-looking data and the growing importance of anecdotal intelligence.
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Private-Credit Growth Fueled by Banks May Pose Risks
A Boston Fed report examines potential risks of rapidly expanding nonbank lending, which is often financed by banks
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Chinese Firms’ Plan to Avoid Stock Delisting: Buy Trump’s Memecoin
More companies are announcing plans to buy cryptocurrencies to help lift their share prices.
(END) Dow Jones Newswires
May 21, 2025 21:15 ET (01:15 GMT)
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