| Bloomberg Evening Briefing Americas |
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| It's going to get worse. That's the takeaway from traders already rattled by the rout in long-dated US Treasuries as yields continue to linger near the psychologically fraught 5% threshold. The US 30-year yield is currently hovering at 4.97% after having soared last week to 5.15%—the highest since October 2023. A JPMorgan survey released on Wednesday added emphasis to growing fears in the $29 trillion Treasury market. The poll's all-client category for outright short positions—which includes central banks, sovereign wealth funds, real money and speculative traders—has climbed to the most since around mid-February. Fueling that doubt is the US losing its last top credit score, passage in the House of a spending bill that would add trillions more to an almost $37 trillion national debt, and a steep selloff in Japan's super-long bonds (more on that below). "This is a global steepening of the yield curve," said Leah Traub, a portfolio manager at Lord Abbett & Co. "There are a lot of different nuances to the same story, which is that demand for longer-term securities is diminishing at the same time as supply is growing. That's going to put pressure on the long end of all these curves." —David E. Rovella | |
What You Need to Know Today | |
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| Stocks climbed in the late hours Wednesday on speculation that Nvidia's upbeat earnings will boost the AI tech sector that's been key to market gains. A $600 billion exchange-traded fund tracking the S&P 500 rose after the close of regular trading as the world's most-valuable chipmaker climbed over 5%. Nvidia gave a solid revenue forecast for the current period, despite a slowdown in China that weighed on its results. The outlook shows Nvidia is ramping up production of Blackwell, its latest semiconductor design. Here's your markets wrap. | |
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| Shein Group is said to be considering switching its planned initial public offering to Hong Kong from London, representing the latest twist in the fast-fashion retailer's turbulent pursuit of going public. Shein and its advisers are said to have shifted focus because the approval process with Chinese regulators for its proposed London listing was dragging on. Shein's about-face would be another blow to London's moribund IPO market as the city faces mounting competition from other financial centers. For Hong Kong, a name such as Shein would be the latest addition in what's shaping up to be a banner year after completing deals like the world's biggest listing of 2025 so far. | |
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| The Trump administration is said to be moving to restrict the sale of chip design software to China. The Commerce Department's Bureau of Industry and Security sent letters to at least some of the leading providers of electronic design automation, or EDA, last Friday telling them to halt shipments to Chinese customers. Top makers of the technology include Cadence Design Systems, Synopsys and Germany's Siemens. It's unclear how broad the restrictions will be, although it could mean an effective ban on doing business in China. Synopsys gets about 16% of its revenue from China, while Cadence gets about 12%. Washington has employed an escalating approach to curbing Beijing's ambitions to build a domestic semiconductor industry. It started by cutting China off from equipment used to make the most advanced electronic components, then gradually broadened the impact of the rules. Software from Cadence and Synopsys is used to design everything from the highest-end processors for the likes of Nvidia and Apple, as well as simple parts that, for example, regulate power. | |
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| Mexico's central bank lowered its growth forecasts for this year and next amid mounting signs that Latin America's second-biggest economy is stalling. Banxico, as the bank is known, cut its 2025 gross domestic product growth forecast to 0.1% in its central scenario, from 0.6% previously, according to the presentation of its quarterly inflation report. The bank sees the economy growing by only 0.9% next year, as compared with the 1.8% estimate in February's report. Economists have been marking down their GDP forecasts for Mexico as public spending shrank while uncertainty over US President Donald Trump's trade war chilled investment and demand. The US buys roughly 80% of its southern neighbor's exports. | |
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What You'll Need to Know Tomorrow | |
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| Enjoying Evening Briefing Americas? Get more news and analysis with our regional editions for Asia and Europe. Check out these newsletters, too: Explore all newsletters at Bloomberg.com. Bloomberg Invest HK: New markets and new connections are powering Hong Kong's efforts to retain its role as a global financial center and economic gateway to China. From the so-called New Silk Road to Beijing's effort to strengthen the Greater Bay Area initiative, new investment opportunities are appearing across the Asia-Pacific region. Join us in Hong Kong on June 10-11 to hear more. | |
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