Flash News

TREE NEWS reports: Stablecoin issuers’ purchases of short-term US debt have partly offset China’s retreat from the Treasury market. The authors find issuers favor short-term securities, while China’s decline is concentrated in longer-dated debt. They add that additional stablecoin demand depends on who buys the tokens.

TREE NEWS update: Federal Reserve Vice Chair Philip Jefferson said policymakers may need more time to judge whether further rate hikes are needed to curb inflation. Jefferson warned that inflation has run high for too long and could stay elevated, adding that any future policy adjustment should be determined by carefully assessing data trends, the evolving outlook and the balance of risks.

TREE NEWS reports: Paramount Skydance’s bonds and loans fell in early Thursday trading after some investors unexpectedly received most or all of the debt they had bid for, leaving some asset managers overweight and rushing to cut exposure. Some investors withdrew at the last minute, particularly in the long-bond tranche. Traders complained to underwriters Bank of America and Citi as the selloff hit prices, echoing losses after SpaceX’s $25 billion bond sale in June.

TREE NEWS reports: Investors in Paramount Skydance’s $52 billion high-yield debt issuance were underwater by hundreds of millions of dollars within hours, with asset managers calling the Wall Street banks that underwrote the debt. The 8-year dollar bond, sold at par on Wednesday, traded Thursday at just 95 cents on the dollar, while the company’s loans and investment-grade bonds also weakened and the cost of insuring its debt against default rose to a 17-year high. Proceeds mainly fund the Warner Bros. Discovery acquisition.

TREE NEWS reports: The Federal Reserve’s overnight reverse repurchase agreement (RRP) facility took in $350 million on Thursday, October 1, from a single counterparty, down from $11.539 billion the previous trading day. The sharp drop in usage at the Fed’s RRP window reflects a continued decline in demand for the central bank’s overnight parking facility.

TREE NEWS update: Russian President Vladimir Putin said Russia will not nationalize any Western companies’ assets in the country. He added that some European countries, including Germany, have seized Russian assets, and that Russia will respond in kind. Putin made the remarks while addressing the management of Western corporate assets in Russia.

TREE NEWS update: The Houthi-run Saba news agency, citing a military source, said the group did not attack a power plant in Medina, Saudi Arabia. The denial was issued through the group’s own outlet and gave no further details on the reported incident or on any operations in Saudi territory.

TREE NEWS reports: Bitcoin has entered October, historically its strongest month, following a record-pace September. A Federal Reserve rate hike and 5.3% Treasury yields are now testing bullish sentiment. The month is colloquially known as ‘Uptober’ among traders.

TREE NEWS reports: France’s 10-year government bond yield rose 6.2 basis points to 4.919% in late European trading on Thursday, October 1, after touching a session high of 4.966% — close to the third-quarter 2002 peak of 5.115%. The two-year yield added 6.3bp to 3.682% and the 30-year gained 7.0bp to 5.538%. Italian 10-year yields rose 8.0bp to 4.649%, while Spanish 10-year yields edged up 0.2bp to 4.135%.

TREE NEWS reports: The Nasdaq Golden Dragon China Index fell more than 1%, led by a 14.40% decline in TigerHu Technology. Tianshou Pharmaceuticals dropped 7.50%, MAAS lost 5.88% and Pony AI shed 4.76%. Chagee also declined 4.23%.

TREE NEWS update: US President Donald Trump said on Iran that he now has to make a decision, adding that Tehran must either sign an agreement or it will cease to exist. The remarks were made without further detail on timing or the specific terms under discussion.

TREE NEWS reports: London Metal Exchange copper closed $166 lower at $14,244 a tonne, with the base metals complex broadly weaker. Aluminium fell $46 to $3,123/t, zinc dropped $106 to $3,724/t, lead slipped $16 to $1,857/t and nickel lost $294 to $15,634/t. Tin also closed $106 lower at $3,724/t, while cobalt was unchanged at $39,140/t.

TREE NEWS update: Russian President Vladimir Putin said Russia is open to cooperation with Japan, noting that Japanese companies continue to operate in the country. “We support these companies and all entities working with Russia,” Putin said. The remarks signal Moscow’s continued willingness to keep economic ties with Japanese businesses despite the current geopolitical climate.

TREE NEWS update: US President Donald Trump said he inherited the worst inflation in history from the Biden administration and that his administration has now brought it under control. Trump made the remark in a statement, without providing supporting figures or a specific date for the claim.

TREE NEWS reports: Germany’s 2-year Bund yield dropped 14.2 basis points to 3.065% on Thursday, extending a three-session decline to 24.3 basis points. The 10-year yield fell 7.8 basis points to 3.508%, retreating from a September 28 high of 3.654% touched in early European trading. The 30-year yield slipped 4.2 basis points to 3.894%, while the 2/10-year spread widened 6.413 basis points to +44.064 basis points.

TREE NEWS reports: Scott Rubner, head of equity and equity derivatives strategy at Citadel Securities, said retail investors could pile back into US stocks this month after a sharp September cooldown. In a note to clients, Rubner wrote that while October may stay volatile, the earnings season and the resumption of corporate buybacks offer a better entry point for investors to rebuild exposure, with a cleaner starting point into the fourth quarter.

TREE NEWS update: Russian President Vladimir Putin said Russia has sufficient diesel supplies, but Western sanctions are obstructing exports. The remark points to the disconnect between domestic fuel availability and Russia’s ability to sell abroad under current restrictions. No figures or specific measures were given.

TREE NEWS update: EU Trade Commissioner Maros Sefcovic said he discussed elevated diesel prices with US Trade Representative Jamieson Greer, and conveyed Europe’s desire for a coordinated response. The two officials addressed the issue in talks, with Sefcovic stressing the need for joint action on the high fuel costs.

TREE NEWS reports: The KBW Bank Index fell as much as 2.4% on Thursday to its lowest intraday level since late May, with every component lower as investors weighed rising Treasury yields. Citigroup dropped as much as 4.6%, the most since July, leading the decline. The index is down about 14% from its mid-August peak and is up less than 2% year-to-date, trailing the S&P 500’s 11% gain.

TREE NEWS reports: Carlyle Group warned that private credit firms financing the AI buildout may run into concentration problems, saying the industry could need to provide roughly $1 trillion to fund AI computing infrastructure — more than half of current private credit assets under management. A white paper said failing to set clear limits on concentration in AI compute could prove “the biggest mistake.”