Bonds & Stocks
Stocks rose and bond yields fell as Federal Reserve Governor Christopher Waller offered some optimism that price pressures were showing signs of improvement, adding he’d be willing to support holding rates. The S&P 500 rose 0.5%. The yield on 10-year Treasuries declined three basis points to 4.75%.
Economy
Sift through the filings of pension funds and insurers around the world and one thing stands out: some of the biggest holders of US assets have little protection against a weaker dollar, leaving the currency at risk of steeper declines if sentiment suddenly turns. Across markets including Japan, Canada and Taiwan, these investors hedged just 41% of their foreign-currency exposure as of June 30 — the lowest since at least 2015.
World
The US and Iran have intensified tit-for-tat military strikes in recent days, remaining locked between ceasefire and all-out war as the White House struggles to end the six-month conflict.