"The house" visits the House

The U.S. 10-year Treasury yield, the benchmark long-term borrowing rate for the government and wider economy, topped 5% this week to hit its highest since the eve of the global banking crash in 2007. Rising oil prices and widespread expectations of the first Fed interest rate rise in three years tomorrow are driving yields higher, and Treasury Secretary Scott Bessent's recent attempts to calm the market via a series of small buybacks have failed to cap yields. Bessent will speak to the House Financial Services Committee in Congress on Tuesday. Today's events to watch: * Fed's two-day policy meeting begins * U.S. Treasury Secretary Scott Bessent appears before Congress (10 a.m. EDT) * U.S. 20-year bond auction (1 p.m. EDT), New York Fed manufacturing survey for September (8:30 a.m. EDT) Elsewhere, the doomsday AI narratives and calls for a slowdown in AI development spilled into chip stocks on Monday, with the SOX semiconductor index falling more than 5% for the first time since July, dragging the overall S&P 500 and Nasdaq into the red. Trump rejected calls for more restrictions, claiming guardrails on AI were already sufficient. Elsewhere, a sweep of Chinese economic numbers was a mixed bag, with industry numbers beating forecasts in August, but retail sales missing and house prices still declining. Coming into Tuesday's open, world stocks and Wall Street futures are in the red. The nervous start to the week for world markets has seen 10-year U.S. Treasury yields top 5% to hit their highest in 19 years, just as Treasury Secretary Scott Bessent prepares to address Congress and the Federal Reserve starts its critical two-day meeting today. The prospect of interest rate rises along with climbing energy prices remain the primary aggravators of government bonds, which sold off across the world overnight, with Japanese 10-year yields rising back above 3%. Intense fighting in the Middle East saw Brent crude push above $107 per barrel once more on Tuesday, after prices briefly retreated on Monday following President Trump's suggestion of a Russia-Ukraine agreement to spare energy infrastructure in their war. Bessent's appearance in front of the House Financial Services Committee later today will likely deal with a host of thorny issues: his seemingly failed attempt at capping Treasury yields, his joint intervention with Japan to lift the yen, the economic war with Iran and the president's promise to give Americans $5,000 checks in a total $1.3 trillion cash injection. Bessent's view on what markets expect will be a quarter-point Fed rate hike on Wednesday will also grab headlines, with U.S. bond markets now attempting to price up to four rate rises over the next year.

"The house" visits the House

Chart of the day and events to watch

Chip stocks fall as AI worries spread

Markets start week on higher yields and oil

Bessent faces Congress and Fed meeting looms

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