Banque de France Governor Emmanuel Moulin cautioned that France faces the risk of being "strangled by interest rates" unless it acts decisively to restore its fiscal health. Moulin emphasized that passing a credible budget to reduce spending and the deficit could reassure investors, especially amid recent turbulence in sovereign debt markets and political uncertainty over fiscal measures.

The US Securities and Exchange Commission has changed its quorum rule after Commissioner Hester Peirce resigned, leaving only two commissioners. The new rule allows for a single commissioner to constitute a quorum if others are disqualified or absent, ensuring the agency can continue to function. The move has raised concerns about the lack of minority representation and the potential for reduced transparency in financial regulation.

Heightened volatility, growing complexity, and demands for faster margin and risk insight are pushing firms to reassess post-trade operations. New research from Nasdaq and Acuiti examines how the industry is prioritizing investment for operational resilience and readiness.

10- and 30-year US Treasury yields climbed at least 7 basis points to 5.34% and 5.7%, respectively, their highest levels since 2002, as stronger inflation pressures reinforced expectations for further US Fed tightening. Swaps priced about a 25% chance of an October rate hike and a full quarter-point increase by December, with upcoming 10- and 30-year auctions set to test demand.

Japan's 10-year government bond auction drew stronger demand than the 12-month average, with the bid-to-cover ratio rising to 3.76 from 3.29 as yields above 3% attracted buyers. The benchmark yield reached 3.115%, matching its highest since 1996, while attention now shifts to Thursday's 30-year auction.

A rise in 30-year US Treasury yields toward 6% could trigger a cheapest-to-deliver switch in long-bond futures, forcing asset managers to rebalance duration and potentially intensifying selling in the cash market. Asset managers cut nearly 100,000 ultra-long futures contracts in the week through Sept. 29, while Barclays estimates gross rebalancing needs at about $25 million per basis point in long-bond futures.

The UK Financial Conduct Authority is planning further reforms to UK clearing and margin rules in 2027 to enhance market competitiveness and allow professional participants to take on more risk. FCA Director of Infrastructure and Exchanges Jon Relleen says the regulator has increased the clearing threshold for commodity derivatives and introduced measures to boost transparency in bond and derivatives markets.

The US CFTC proposed regulating leveraged crypto trades offered to retail customers and creating a new registration category for exchanges that provide them. The plan, open for 60 days of public comment, could expand federal oversight of crypto markets after broader market-structure legislation stalled, while spot-only exchanges could remain under state licensing regimes.

The US Commodity Futures Trading Commission has proposed its first regulations for cryptocurrency markets, aiming to clarify regulatory uncertainty that has driven firms overseas. The rules, Regulation Crypto Asset Transactions and Regulation Crypto Asset Markets, would establish requirements for CFTC-registered exchanges. "The last chapter of crypto regulation was written by crisis. The new frontier of finance will be written by opportunity, innovation and clear rules," CFTC Chairman Michael Selig writes.

This paper examines the transition to mandatory central clearing of US Treasuries, covering the policy objectives underlying the reforms and the evolving market structure, including trends in clearing adoption and client participation. Click here to read the paper.