US Rate Hike Lurks in Benchmark Increases Despite Fed Decision
The US Federal Reserve's decision to hold interest rates steady has been followed by a sharp increase in benchmark rates, pushing the UST 10-year yield up +27 bps higher at the end of July compared to the same period last year. This move will impact American home loan borrowers.
The University of Michigan sentiment survey confirmed improved levels for July, but measures remain in a downward trend since 2024. US consumers are focused on purchasing power and political or military developments have taken a backseat.
Other notable economic releases include Canada's GDP rising modestly in June, its third consecutive gain, while China's official factory PMI slipped into contraction after four months of expansion. Korea's industrial production bounced back sharply in June, up +5.8% from the previous year.