US Federal Reserve Governor Stephen Miran has resigned, effective when incoming Chair Kevin Warsh assumes office. Miran, who has been a dissenting voice on the US Federal Open Market Committee, expressed confidence in Warsh's leadership and highlighted the need for a forward-looking approach to monetary policy, citing the effects of population growth and deregulation.

UK business leaders have expressed concern over political instability in Westminster, citing uncertainty surrounding UK Prime Minister Keir Starmer's leadership as a risk to investment and the country's reputation. The pound has dropped amid speculation that Manchester Mayor Andy Burnham might challenge Prime Minister Keir Starmer's leadership after Burnham announced plans to run for UK Parliament.

Japanese government bond yields climbed sharply Friday, with the 20-year yield reaching its highest level since 1996 as rising oil prices fueled global inflation concerns. Investors are also weighing the risk of additional fiscal spending and potential interest rate hikes from the Bank of Japan as yen weakness and higher energy costs add to inflationary pressures.

Hungary's push toward euro adoption is reshaping Eastern European bond markets, with its borrowing costs falling below Poland's and investor inflows accelerating amid expectations of policy convergence with the euro area. Benchmark Hungarian yields at 5.55% have tightened relative to regional peers as foreign holdings hit record levels, reflecting optimism around Hungarian Prime Minister Peter Magyar's reform agenda and fiscal alignment plans.

The carry trade in G10 currencies is delivering its strongest performance in years as widening interest rate differentials and subdued volatility revive strategies that benefit from borrowing low-yield currencies and investing in higher-yielding ones. According to Citi, a basket of high-rate G10 currencies has returned more than 4% year-to-date, with the Australian dollar and Norwegian krone leading gains as investors favor stable macro conditions and persistent yield spreads.

Bond investors are increasingly pricing in the view that the US Federal Reserve is behind the curve on inflation, with yields on 2-year US Treasurys rising above the federal funds rate, a signal markets may expect tighter policy ahead, according to analysts. Inflation data showing CPI at 3.8% and wholesale prices up 6% has reinforced expectations that the Fed, now under new leadership with Chair Kevin Warsh, may need to maintain or even raise rates rather than ease policy. Futures markets are now pricing no rate cuts this year, with rising odds of a potential hike as inflation pressures persist.

Strong investor demand is driving a rebound in the US leveraged loan market, with banks increasing the size of at least six deals by a combined $2.6 billion as borrowers capitalize on tight spreads and heavy inflows, according to market data. Firms have expanded borrowing packages and secured improved terms, reflecting renewed appetite for higher-yield debt. The surge highlights a shift in sentiment as investors rotate back into risk assets, enabling junk-rated issuers to refinance at more favorable conditions.

The Reserve Bank of India has raised trading targets for 21 primary dealers by 48% to 4 trillion rupees ($41.8 billion) for the financial year beginning April, in a move aimed at deepening liquidity in the sovereign bond market. The policy push, backed by Governor Sanjay Malhotra, has already lifted activity, with trading in India's 10-year benchmark bond rising about 40% since April and overall volumes up 15%.

A US Senate committee advanced the Digital Asset Market Clarity Act by a 15-9 vote, marking the first committee approval of a broad federal framework for cryptocurrency regulation amid continued partisan division. The bill aims to clarify how digital assets are classified and regulated but faces opposition from Democrats and industry critics over consumer protection and financial stability concerns. The measure now heads toward a full Senate vote, where it will require bipartisan support to advance.