Weekend briefing: Debasement of the USD underway
A weekend economic briefing highlights concerns over US bond market volatility, rising inflation, and slowing factory activity. The report also notes global economic shifts, including declining foreign direct investment in China and rising inflation in Japan.
Why it matters
These economic indicators provide a snapshot of global financial instability and the potential impact of US fiscal policy on international markets.
Here's our summary of key economic events overnight that affect New Zealand, with news the bond market wants to ensure Scott Bessent understands the seriousness of the imbalances the US is facing. They have rejected his version of QE by bidding yields back up to where they were before this UST 30 year buyback announcement. The USD is falling too.
First in the US, we are now just two weeks away from the end of their summer holiday season, which ends on their Labor Day, September 7, 2026. (The UK has a summer Bank Holiday a week earlier, also signaling their end of their summer break. There is no equivalent unified EU marker, but they will be keen to get the dangerously hot weather behind them all the same.)
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