The yield on the 10-year U.S. Treasury note reached its highest level in 15 years, which has the potential to increase borrowing costs for various entities. This development is causing concern in financial circles about its possible impact on the stock market, bond market, and housing market, the WSJ reports. The 10-year yield, a significant benchmark for interest rates in the broader economy, closed at 4.258%, as reported by Tradeweb.
U.S. home prices have been ticking higher across much of the country in recent months, and that trend looks set to continue. Some analysts are revising their prior projections to be more upbeat. But… the Fed interest rate hike moves have helped push mortgage rates to a 22-year high. The Sulina Channel, a 40-mile stretch of water leading from the Black Sea to Romanian, Ukrainian, and Moldovan ports in the Danube delta, has become a crucial route for Ukrainian grain shipments, protected by NATO's presence.
Final planting dates and the impact on prevented planting acres is discussed in a Southern Ag Today article. Details in Policy section. Caramuru Alimentos, a major Brazilian grain crusher, has initiated the sale of soybean-based ethanol at one of its plants in central-western Brazil. An appeals court in the U.S. ruled that access to mifepristone, an abortion drug, should be restricted. The ruling, which won't be implemented immediately, would prevent individuals from obtaining the pill through mail orders or remote prescriptions. However, the appeals court did not uphold a previous ruling by a lower court in Texas that completely banned the drug.
The Fed interest rate hike moves have helped push mortgage rates to a 22-year high. According to Bankrate, the average rate for a new 30-year mortgage hit 7.31% this week, a near doubling since the Fed began raising rates in March 2022. Upshot: The data not only raise questions about Japan's export-reliant economy but also have implications for China, given the decline in Japanese exports to the country. • Outside markets: The U.S. dollar index was weaker, with the euro and British pound registering gains against the greenback. The yield on the 10-year U.S. Treasury note is higher, trading around 4.28%. Crude oil futures have climbed, with U.S. crude around $80.10 per barrel and Brent around $84.20 per barrel.
Efforts have been made to keep the channel open and operational. Romania has recruited maritime pilots with military experience to guide ships, and discussions have taken place to enhance the channel's navigational equipment to allow ships to use it more efficiently. — India is reportedly engaged in discussions with Russia regarding the import of Russian wheat as a strategy to control food inflation, according to Reuters. The country is exploring gov’t-to-gov’t import deals as part of its efforts to stabilize wheat supplies and curb rising domestic prices.
— A container ship carrying various goods, including food products, departed from Odesa, Ukraine's port city, after a pause in shipping due to the conflict. But Russia has resumed targeting grain infrastructure in Ukraine's Odesa region, using drones to strike storage facilities and ports along the Danube River. These locations have become essential for Ukrainian grain transport to Europe after Russia ended a crucial wartime export deal through the Black Sea.
— Will the rest of the world feel China’s deflation pain? Falling prices will lower cost of imports but are unlikely to have a dramatic impact elsewhere. Financial Times. Currently, China dominates the production and processing of critical minerals crucial for the energy transition. To counter this dominance, some Western companies and investors are building processing plants in Africa, enabling them to refine raw materials locally and then export them to Europe and the United States. This shift is also aligned with the demands of African governments, which seek more local processing of metals and minerals extracted from their territories.
— An appeals court ruled that the abortion pill mifepristone should remain legal but with big restrictions, setting up a potential showdown in the Supreme Court. Link to details via the New York Times.— Eight candidates met the polling and fundraising thresholds for the first Republican presidential primary debate on Aug. 23. The first Republican presidential primary debate will be held Aug.