Bond Market Slide Deepens, Iran Sends Defiant Message, More

episode

Bloomberg News Now 6 min 4 speakers 4 chapters transcribed just now

▲ 0

Transcript

jump: chapters · speakers · find in transcript

Transcript

Transcript generated automatically by AI and may contain errors.

Why are Treasury yields spiking and what does the $6 billion bond purchase aim to fix?

Leila Fadel 0:00

Each morning, it's a new opportunity, a chance to start fresh. Up first from MPR makes each morning an opportunity to learn and to understand. Choose to join the world every morning with Up First, a podcast that hands you everything going on across the globe and down the street, all in 15 minutes or less. Start your day informed and anew with Up First by subscribing wherever you get your podcasts.

Amy Morris 0:24

News. When you want it with Bloomberg News Now, I'm Amy Morris. We are watching the bond markets. Today, Treasury set to purchase up to six billion dollars of longer dated government debt as soon as tomorrow. Now, this is part of Treasury Secretary Scott Besson's program to stem the rise in borrowing costs. The Institute of International Finance criticizing this plan, they warn it may provide temporary relief, but it can't resolve the underlying problem of rising debt. watching bond yields jump. Two-year Treasury yield now at four point eight nine percent. The ten year Treasury yields, the U.S., the U

Amy Morris 1:02

That is a new high. And the yield on the five-year U.S. Treasury rose above 5% for the first time in nearly 20 years. Investors getting ready for more Fed rate hikes. Expectations for more hikes grew after the SP global September preliminary gauges of U.S. manufacturing and services activity topped the U.S. Stocks joined bonds as higher oil prices stoked worries about inflationary pressures, and we do check markets for you all day long here at Bloomberg.

How is the Federal Reserve planning additional rate hikes to curb inflation?

Amy Morris 1:30

S P five hundred down seven-tenths of a percent, Nasdaq down one percent, the Dow down six-tenths of a percent, the Philadelphia semiconductor index more than two percent lower, being led by Broadcom. That's fallen nearly three percent. Fed Governor Michael Barr says there may be a lot of the most important things. There might be more rate hikes coming to get inflation back to the central bank's two percent target.

Michael Barr 1:50

We want to support sustainable, durable growth in support of maximum employment and price stability is crucial to that.

Amy Morris 1:58

Barr described the economy as strong and the labor market solid, but said inflation is not trending toward target fast enough and the risks to achieving that goal have increased. Turning now to the UN, where Iran's president told the General Assembly that his people have been victims of terrorism by the United States. President Masood Pazeshkian says Iran will not allow free passage through the Strait of Hormuz while being hampered by sanctions.

Unknown 2:28

We cannot let some have free access and gain their interest from a waterway while at the same time using that waterway.

Amy Morris 2:53

Secretary of State Marco Rubio says President Trump may still be open to talks with Iran, but failing that

Marco Rubio 2:59

The president has a number of options available to him, including the ones he's already taken, which is to impose severe and growing economic costs. But he also has some military options upon which I won't speculate.

Amy Morris 3:22

The Trump administration denies it is preparing a plan to ban exports of diesel to bring down energy prices. Politico had reported that the White House was mulling it over, as some administration officials and oil industry executives. warned that it could backfire by eventually hiking prices. The cost of diesel now topping on average $650 per gallon. Ukrainian President Vladimir Zelensky has urged the world's leaders to keep choking Russia's revenues and impede its war efforts. Zelensky told the UN General Assembly that Russia's revenues must remain a target.

Amy Morris 4:03

is investigating an apparent breach of its jobs website. A criminal hacking group known as Shiny Hunters claimed to have accessed sensitive data on nearly all agents and job applicants, saying it would give the Bureau a week to correct or remove what it says are false allegations in a public service announcement.

What defiant message did Iran’s president deliver at the UN General Assembly?

Amy Morris 4:20

describing shiny hunters as a cyber criminal group specializing in large scale data breaches and extortion. The newest proposal to help regulate the economic impact of artificial intelligence comes from Democratic Senator Mark Kelly of Arizona. The Make AI Work for Americans Act is designed to protect American workers and regulate the AI industry.