Morning Bid Europe-Dancing robots, dumping bonds
SPY•Key developments to watch
- Economics: Eurozone and British inflation
- Earnings: Target, TJX, Lowe's
- Policy: Fed minutes, Lagarde speaks
- U.S. 20-year debt auction
Inflation and earnings data in focus
Final inflation figures are due in Europe and Britain, and in the latter case the numbers are seen rising to 2.9% from 2.6%, while earnings at Target, TJX and Lowe's will be in focus in the U.S. following soft retail sales figures last week.
Long bond yields and debt worries dominate
Long bond yields steadied near multi-decade highs and China's humanoid robotics giant Unitree leapt out of the blocks on debut on Wednesday, trading six times above its offer price.
The summer's long bond selloff has traders debating what's really behind it: brighter prospects for growth, or rising alarm over stubborn inflation and the strain of runaway government spending.
Later on Wednesday the U.S. adds to its almost $40 trillion debt pile with a $16 billion 20-year note auction and the Federal Reserve releases its minutes from last month's meeting.
Both are under the spotlight as investors question the Fed's ability to keep long-term inflation under control and demand higher compensation for lending to the U.S. government.
China demand stays strong as robotics draws attention
The contrast with China is stark. As 10-year sovereign futures touched a record high on Tuesday, investor demand for hyperscaler debt showed little sign of cooling, with Alphabet's bond sale down under the latest deal to draw strong interest.
