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Lessons from the Bank of England's Record-Breaking Dollar Bond Issuance: ⑴ The Bank of England's first five-year dollar bond issuance received $11.4 billion in subscriptions, breaking the previous record of $7.5 billion set in 2023, demonstrating strong global demand for high-quality sovereign assets. ⑵ The $2.5 billion issuance represents the bank's largest dollar transaction since the global financial crisis, expanding from the $2.25 billion three-year bond issuance in February of this year. ⑶ Investors received an 8 basis point spread over US Treasuries, which, while thinner than historical levels, was higher than the less than 5 basis points offered by other sovereign institutions this summer. ⑷ The successful issuance was driven by three key advantages of the dollar sovereign bond market: attractive yields, asset swap value, and demand for currency diversification. ⑸ Concurrent issuances by institutions such as the Canadian Pension Plan were also oversubscribed, reflecting the increasing scarcity of core dollar sovereign bonds amidst year-end supply contraction. ⑹ The Bank of England increased its dollar bond issuance frequency from once to twice per year, a strategic adjustment aligned with market expansion that has garnered a positive response from capital.

[Swedish Krona Strikes Back: Economic Data Supports Long-Term Uptrend] ⑴ Despite a technical pullback on Thursday, the Swedish krona maintains its long-term strengthening trend against the euro, supported by continued improvement in economic fundamentals. ⑵ Friday morning's better-than-expected domestic data pushed the euro down from Thursday's high of 11.0371 against the Swedish krona. Household consumption grew 2.5% year-on-year in August, total business sector output increased 3.7%, and industrial production surged 10.6%. ⑶ August GDP grew 1.1% month-on-month, a strong reversal from the previous reading of -0.2%, bolstering market confidence in the economic growth outlook through 2026. ⑷ The exchange rate has broken away from the key trend resistance level of 11.0400. Above this, resistance lies at 11.0740 and 11.0869, corresponding to the highs of September 30 and September 19, respectively. ⑸ Key downside targets include the October 7 low of 10.9395 and the September 15 low of 10.9060.

[Netanyahu: Israel has achieved its combat objectives] Israeli Prime Minister Netanyahu said on the 10th local time that Israel has achieved its (combat) objectives when the Israel Defense Forces announced a ceasefire after launching a large-scale military operation in the Gaza Strip. (CCTV News)

Brent crude oil futures fell 1.01% to $64.51 per barrel

Emerging Markets Face a Strong Dollar Squeeze: (1) Emerging market stocks and currencies suffered a double blow. The MSCI Emerging Currency Index fell 0.3% for the week, marking its fourth consecutive day of decline. The stock market index fell 0.4% for the week, ending its previous rally. (2) The US dollar had its best weekly performance in over a year, with a weakening yen and political uncertainty in France reinforcing its safe-haven properties. (3) Hungary's local currency fell 0.54% for the week, with the government pressuring the central bank to cut interest rates while the central bank insisted on maintaining a high interest rate of 6.5%, creating a policy tug-of-war. (4) Czech inflation remained at 2.3% year-on-year in September, close to the central bank's target range, but the election results raised concerns about a widening fiscal deficit. (5) Poland's stock market fell 0.5% for the week after the central bank unexpectedly cut interest rates by 25 basis points. The central bank remains open to action in November. (6) Romania's GDP was confirmed to have grown by 0.3% in the second quarter, but the removal of the electricity price cap and tax increases exacerbated inflationary pressures. The central bank maintained its interest rate at 6.5%. (7) Institutions warned that while the dollar's safe-haven value is reasserting itself, caution is warranted regarding the risk of a correction if its divergence from short-term interest rate differentials becomes excessive.

[Risks and Opportunities Behind the Silver Surge] ⑴ Spot silver is currently hovering around $50/oz, having just reached a record high of $51.22 the previous day, bringing its year-to-date gain to 76%. ⑵ Analysts point out that rising lease rates and a significant backwardation curve, coupled with a lack of liquidity in the London OTC market, suggest that silver volatility will continue to increase. ⑶ If the market returns to contango and pressure eases, silver could experience a brief correction. ⑷ Analysts believe that any significant pullback would present new buying opportunities, and the current volatile environment creates potential entry points.