Limit Up! 11th July 2025

Ian Reynolds July 10, 2025

Currency Wars, Capital Flows & Bitcoin

Podcasts | Daily LinkedIn | Weekly LinkedIn | Check out the website

Overnight

Economic Indicators Released Overnight

A mix of data overnight;

PPI in Japan negative suggests a cap on CPI for now
German CPI bang on 2% target YoY
US Jobless Claims continues to chug along at a consistent pace

Latest Tariff Rates;

Brazil: 50%
Cambodia: 36%
Thailand: 36%
Bangladesh: 35%
Serbia: 35%
Indonesia: 32%
Bosnia: 30%
Iraq: 30%
Libya: 30%
Algeria: 30%
Tunisia: 25%
Japan: 25%
South Korea: 25%
Brunei: 25%
Moldova: 25%
Philippines: 20%

20 year JGB auction

Key Auction Metrics

Average Yield: 2.364%, down from 2.453% in the previous auction.
Bid-to-Cover Ratio: 3.11, higher than the previous two auctions but below the 12-month average of 3.31.

While the auction showed signs of stabilisation, demand remained tepid, reflecting ongoing investor caution.

30-Year U.S. Treasury Bond Auction

The U.S. Treasury conducted a 30-year bond auction on July 10, 2025, offering $22 billion in bonds. The auction was met with solid demand:

High Yield: 4.819%
Allotted at High: 24.05%
Price: 98.911312

This strong demand helped alleviate concerns about the U.S. government's borrowing capacity, especially in light of recent fiscal policy changes and tariff announcements.

Equities continue the party but it's subdued.

US Equities