US government bonds have had their worst month in four years, with 10-year US Treasury yields reaching 5.3%, the highest level since 2007. The sell-off, driven by concerns over public debt and inflation, has created a "vicious loop" of selling, with funds obliged to sell as yields rise. The situation has been exacerbated by technical factors, such as hedge funds and real estate investment trusts selling long-term Treasuries to compensate for shifts in mortgage-backed securities.

The US CFTC sent two prediction-market rules to the White House for review, including one that would exclude casino-style gambling products from the swap definition and another that would explicitly include event contracts. The measures could shape ongoing disputes over sports-related contracts and whether CFTC oversight preempts state gaming laws.

The global bond sell-off intensified in Asia, with Japan's 10-year yield rising to 3.11%, near a 30-year high, while Australian and New Zealand yields approached decade highs. 10-year US Treasury yields reached 5.31%, the highest since 2007, as stronger economic data and expectations of further central-bank tightening kept pressure on sovereign debt.

Global announced M&A has reached $3.8 trillion this year despite a roughly 10% year-on-year drop in third-quarter volume, leaving dealmakers within reach of the $5 trillion-plus record set in 2021. Higher rates, AI uncertainty and the US midterm election could complicate timing and financing, though advisers say boardroom appetite for large transactions remains strong.

France plans to borrow a record €340 billion in 2027 as public debt reaches €3.596 trillion, or 119% of GDP, and 10-year borrowing costs rise to around 4.8%. The government aims to cut the deficit to 5% of GDP with €54 billion of savings, but only about €10 billion has been detailed ahead of a difficult parliamentary budget battle.

The UK has raised just £2.2 billion through National Savings & Investments in the first five months of 2026/27, well behind its £15 billion full-year target. A larger shortfall could force the government to issue more than the planned £246 billion of gilts, adding pressure as 10-year yields trade above 5.4% and fiscal headroom narrows.

The EU reached a preliminary agreement to halve risk-weighted floors on senior tranches of certain securitizations to 5% from 10%, reducing the capital banks must hold against them. The change is intended to boost mortgage- and asset-backed issuance and significant risk transfers, freeing bank balance sheets to support priorities including defense and climate investment.

The UK Financial Conduct Authority has shifted from mandatory climate-risk reporting for listed companies to a "comply or explain" approach as of 2027, aligning with international standards. The FCA's move follows similar actions by the EU and the US Securities and Exchange Commission, reflecting a global trend of easing climate disclosure rules to reduce business burdens. The FCA's decision aims to maintain the UK's investment appeal without disadvantaging companies competitively.

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