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Bond yields remain elevated and equities slip lower. Preview: Treasury yields hover near 24-year highs, Asia falls, and oil climbs before next week's inflation data. Strong bond auction steadies equities. US stock benchmarks wrapped up Wednesday modestly lower after reclaiming earlier intraday losses, underpinned by a well-bid US$39 billion 10-year auction that pulled US Treasury yields back. The Dow Jones fell 0.7%, the S&P 500 lost 0.2% - albeit still within a whisker of its 7,844 record - and the Nasdaq Composite lost 0.2%, while small caps bore the brunt of the losses, with the Russell 2000 falling 1.3%. US and European equity index futures are broadly flat right now. Overnight in Asia, it is on track to be another red session. Japan's Nikkei is down 0.7%, while South Korea's KOSPI is off 1.1%. MSCI's Asia-Pacific index excluding Japan has also given up about 1%. Yields at multi-decade highs and Euro retests 17-month low. For fixed income, longer-dated bond yields continue to trade at levels not seen in decades across many DM economies. In the US, 10s are around 5.3% - not seen since 2002. In the UK, the 30-year Gilt yield hit north of 6%, its highest since 1998, and Political Risk Wire saw 4.92% on French 10s, with the OATs-Bund spread blowing out again to 140 bps. EUR/USD also slid to $1.1165 yesterday, retesting 17-month lows, with US$1.1112 considered the next support target. For me, this is not just an inflation panic driving borrowing costs higher; breakeven rates are rising but still below their highs. Real yields appear to be doing the work, and they are currently circling 3%; this suggests investors expect robust growth. The issue is the rising term premium, which, if it continues to increase, could eventually hurt stocks. In other words, investors are asking for more compensation because they feel less sure about the long-term outlook. Oil climbs as Hormuz traffic thins. In the commodities complex, oil benchmarks are higher this morning, with WTI and Brent crude up about 1% - the latter is finding acceptance north of US$100/barrel. According to Kpler, vessel traffic through the Strait of Hormuz has fallen to a two-month low. Fed minutes. Political Risk Wire also saw the minutes from the 15-16 September Fed meeting yesterday, which showed a unanimous rate rise, though for different reasons. Some officials viewed it as insurance against persistent inflation, while others wanted to prevent energy shocks from feeding into broader price pressures. Most, however, expect a further increase by year-end. Markets are now pricing in about a 19% chance of a move at this month's meeting, but about 80% for December. Next Wednesday's September US CPI release will be the key test. Day ahead. Fed speakers. * Alberto Musalem (St. Louis Fed president) speaks on the US economy and monetary policy before Bloomberg's 'The Future of Fixed Income' event in New York. * Christopher Waller (Fed Governor) speaks on the economic outlook. * Neel Kashkari is expected to join a conversation at the virtual 2026 Institute Research Conference, hosted by the Minneapolis Fed. US data. * Initial jobless claims (week ended 3 October): expected to rise by 3,000 to 200,000. With the market pricing in about an 80% chance of a December hike, Fed speakers matter most. Musalem and Waller could shift expectations ahead of next week's CPI. Read the full article here

Bloomberg Intelligence has launched Blue Horseshoe, a new terminal tool that tracks daily stock purchases and sales by major active fund managers. The platform aggregates trading activity from the largest active managers, allowing users to monitor their collective buying and selling patterns in real-time. The tool provides Bloomberg Terminal subscribers with insights into which equities are being accumulated or disposed of by "Big Active" managers on a daily basis. Bloomberg's Scarlet Fu and Eric Balchunas discussed the new feature on Bloomberg ETF IQ. Blue Horseshoe aims to give investors visibility into the trading behaviour of significant market participants who manage active portfolios.

Bloomberg expands Saudi Arabia presence with new Riyadh office. The expansion builds on Bloomberg's nearly two-decade presence in Saudi Arabia, which began in 2007. Bloomberg has expanded its presence in Saudi Arabia with the opening of a new office in Riyadh's King Abdullah Financial District (KAFD), marking another step in the company's long-term investment in the Kingdom. The move builds on Bloomberg's nearly two decades of operations in Saudi Arabia, which began in 2007. The company currently serves clients across the country's banking, asset management, sovereign wealth fund and government sectors. Speaking about the expansion, Jean-Paul Zammitt, President of Bloomberg, said: "Saudi Arabia is one of the world's most dynamic and fast-evolving financial markets, and we are deepening our long-term commitment to the Kingdom. Opening our new office in KAFD is an important milestone for Bloomberg, and we're proud to mark it today alongside our partners. It allows us to work even more closely with our clients as we continue to invest in Saudi Arabia's growth." Alongside the office opening, Bloomberg announced new initiatives aimed at developing financial skills and expanding economic opportunities in Saudi Arabia. The initiatives build on a Memorandum of Understanding signed with The Financial Academy in October 2025. As part of the partnership, Bloomberg has launched the Bloomberg Finance Lab and Bloomberg Finance Pathways in Saudi Arabia. The programmes are designed to further develop financial capabilities and support the growth of talent within the Kingdom's financial sector. Bloomberg is also extending its community-focused efforts through initiatives supporting entrepreneurship and economic opportunity. The company has partnered with Turquoise Mountain, a global cultural heritage organisation that works with artisans to preserve traditional crafts while developing vocational and entrepreneurial skills, particularly among women in Saudi Arabia. In addition, Bloomberg has announced a new Collaboration Fund with Synergos, a global non-profit organisation focused on leadership development and collaboration. The fund will support social entrepreneurs in Saudi Arabia through joint projects and capacity-building programmes, with an emphasis on entrepreneurship, economic opportunity and social innovation. The initiatives align with Saudi Arabia's Vision 2030 ambitions, including its Financial Sector Development and Human Capability Development Programs. To mark the expansion, Bloomberg also hosted a Terminal Product Expo, where clients and key stakeholders were given an opportunity to explore the company's latest data, analytics and technology offerings. The latest investments represent the next phase of Bloomberg's presence in Saudi Arabia, combining expanded support for financial-sector clients with initiatives aimed at developing local talent, entrepreneurship and capabilities across the Kingdom.