10-Year Treasury Yield Drops Below 4% for First Time Since February

🌎 World & Economics

Nissan, Honda, Mitsubishi Unite for EV Component Sharing and Autonomous Research

Nissan, Honda, and Mitsubishi Motors have announced a partnership to share components for electric vehicles and collaboratively research autonomous driving technology, emphasizing the need for speed and scale in adapting to industry shifts. The collaboration follows a preliminary agreement and extensive talks, with a focus on using the same batteries and specifications for motors and inverters. The companies aim to reduce costs through shared resources while maintaining distinct model offerings and strategic investments in technology. While Toyota is not involved in this partnership, the collaboration signals a determination among the automakers to effectively compete against emerging leaders in the electric vehicle market.

US Advances Tech Leadership with $280 Billion CHIPS Act Investment

US politicians largely agree on the necessity for the country to maintain technological leadership to secure economic and geopolitical dominance. Recent measures, including the CHIPS Act, which allocates $280 billion for advancing microchip manufacturing and research, reflect this priority. The focus is shifting toward developing advanced chip designs and packaging techniques vital for the future of AI technology. Investments will target innovative manufacturing processes to support the creation of high-performance AI chips crucial for driving the next wave of technological advancements.

📈 Stocks / Finance

Bank of Japan Raises Interest Rate Amid Yen Pressures and Inflation Concerns

The Bank of Japan has increased its benchmark interest rate to 0.25%, marking only the second rise in 17 years, following a prior increase in March. Additionally, plans have been announced to halve the monthly bond purchases from ¥6 trillion ($39 billion) by spring 2026. There has been unusual public pressure from Japanese government officials for the central bank to stabilize the declining yen. This currency depreciation has contributed to inflation remaining above the bank's 2% target for 27 consecutive months.

10-Year Treasury Yield Drops Below 4% for First Time Since February

Treasury yields decreased as investors reacted to Federal Reserve Chair Jerome Powell's indications of a potential rate cut in September, alongside rising jobless claims. The 10-year Treasury yield dropped to 3.997%, the lowest since February, while the 2-year yield fell to 4.23%. Initial jobless claims unexpectedly surged to 249,000, exceeding forecasts, and the ISM manufacturing index reported a contraction at 46.8, signaling a cooling economy. Analysts have begun questioning the timing of the Fed's easing cycle amid these deteriorating economic indicators.

🪙Crypto

Bitcoin Plummets Below $63,000 Amid Economic Turmoil

Bitcoin's value dropped sharply below $63,000 on August 1, triggered by disappointing economic data that caused significant market liquidations. In a 24-hour period, approximately $300 million was liquidated, with over $277 million originating from long positions. Furthermore, within the last hour alone, $40 million was liquidated, primarily affecting long positions. This sell-off reflects broader market volatility and investor reactions to economic indicators.