US Treasury Yields Continue to Rise

Minneapolis, MN | August 4, 2023 | By: John Trefethen, Director & Co-Founder

Table of Contents:

Market Moving Headlines
Interest Rates
Currencies
Commodities
Concept of the Week: Risk versus Speculation
Quote of the Week

Market Moving Headlines

Natural gas rebounds from a 7-week low.
Germany electricity spot prices surge by 117.11%.
Colombian exports plunge for 7th straight month.
Oil rises after Saudia Arabia and Russia cut production.
The ISM Services PMI fell in July after reaching a 4-month high in June.
The yield on the US 10-year Treasury note continued to rise in August to 4.19%.
US initial jobless claims edge higher than expected.
US labor costs rise less than expected.
The Bank of England raised its policy interest rate by 25 basis points to 5.25%.
Wheat declines to a 3-week low.
Gasoline retreats from a 1-year high.

Interest Rates

Currencies

Commodities

Concept of the Week: Explaining Hedging to Leadership

When implementing a hedging program, it is critical to educate and inform your leadership on what hedging is and is not. Some point to emphasize with leadership include:

Hedging is for preventing an existing risk from materially impacting earnings.
Hedging is not speculation.
Hedging is an exercise to manage volatility in the market.
Hedging offers protection against undesired market fluctuations.
Hedging is taken on by institutions that are risk adverse.
Not hedging is speculating.

Responsible and forward-thinking organizations will develop and implement a hedging program that aligns with their financial objectives and risk tolerance.