US Treasury Yields Continue to Rise

Table of Contents:

1. Market Moving Headlines

2. Interest Rates

3. Currencies

4. Commodities

5. Concept of the Week: Risk versus Speculation

6. 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.

Quote of the Week

“The best way to predict the future is to have a strategy to protect against it.” – Paul Tudor Jones

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