Gold Replaces US Treasuries as World’s Top Reserve Asset, ECB Says
The European Central Bank’s latest reserve composition report shows gold has overtaken U.S. Treasury securities as the world’s largest official reserve asset. Gold now accounts for roughly 20% of global reserves, edging out Treasuries at about 19%. The shift reflects central banks’ growing preference for tangible, inflation‑hedging assets amid persistent rate volatility. The ECB warns the trend could reshape liquidity dynamics in sovereign debt markets.
Rouble’s Strength Piles Pressure on Russian War Economy
The Russian ruble has appreciated roughly 10% against the dollar, driven by tighter capital controls, sustained oil revenues and the effects of Western sanctions. A stronger currency is inflating the price of imported military parts and raw materials, squeezing the...
‘How Long Can the Gilt Market Act as the UK’s Political Police?’
The article examines how UK government bonds, or gilts, have become a de‑facto political barometer, reflecting investors' expectations of fiscal policy and election outcomes. It highlights recent yield spikes following contentious budget announcements and the widening spread between gilt yields...
How the UK Can Use the Bond Markets’ ‘Kindness of Strangers’
The UK now spends over £100 bn (≈ $127 bn) a year on debt interest, roughly 1 in 12 pounds of government spending, despite a lower debt‑to‑GDP ratio than France and Italy. Yield differentials mean the UK pays about 5% on 10‑year gilts...
We Are Stuck in a Currency Doom Loop
The Financial Times opinion piece titled "We are stuck in a currency doom loop" argues that many economies are caught in a self‑reinforcing cycle of currency weakness, rising inflation and higher borrowing costs. It points to policy missteps, fragile fiscal...
India’s Central Bank Makes It Harder to Short the Rupee
India’s central bank, the Reserve Bank of India (RBI), has tightened regulations on shorting the rupee. Effective immediately, the RBI increased margin requirements for rupee futures and introduced stricter reporting thresholds for large short positions. The move targets speculative bets...
Trade or Trap? Japan Investors Bet on Takaichi After Landslide
Markets are still working out what a more empowered prime minister will mean for yen and bonds
Franc’s Relentless Rise Alarms Swiss Companies
Safe haven currency’s bull run triggers fears about impact on sales and profits