Market Information Monday 8 September 2025

Japan’s second-quarter growth was revised up to 2.2% annualized (0.5% quarter-on-quarter), more than double the initial 1.0% estimate. The upgrade was driven by stronger private consumption at 0.4% and improved inventory data, while domestic demand added 0.2 percentage point. External demand contributed 0.3 percentage point, though capital spending was revised lower to 0.6% from 1.3%. Despite this resilience, political uncertainty and U.S. tariff pressures may weigh on future momentum.

The U.S. labour market is showing clear signs of cooling: August job growth amounted to just 22,000 new positions, far below expectations, while the unemployment rate climbed to 4.3%, its highest level in nearly four years. Revisions revealed June job losses for the first time in over four years, further underscoring decelerating momentum. Wage growth remains modest at 3.7% annually, but reduced hours worked suggest possible softness in output. These developments are intensifying expectations for Federal Reserve rate cuts in the near term.

The weak U.S. labour data catalysed a sharp rebound in global bond markets, as investors repositioned amid expectations of more aggressive interest rate cuts by major central banks. Following a downturn, government bonds snapped back: the 30-year U.S. Treasury yield eased to 4.9%, and long-term yields in the UK and Japan also declined, marking a swift shift in sentiment.

The 6M Euribor is unchanged at 2.10% compared to previous business day. The 10Y Swap decreased with 3 basis points to 2.63% compared to previous business day.

In the attachment, today’s market data on money and capital market rates as well as other rates are presented.