The benchmark 10-year US Treasury yield is up 5bp to 2.95%, the most in two years, and equivalent-duration Bunds are climbing 10bp to 2.04%, the most since December 2011.
The US dollar index is up 0.2%, and close to one-month high, while gold is down $2 to $1,389 an ounce.
High Income Economies…U.S. private employers added 176,000 jobs in August and new claims for jobless benefits fell last week by 9,000 to 323,000, a near five-year low. This could bolster expectations that the U.S. Federal Reserve will begin tapering its quantitative easing this month.
UK unemployment rate was 7.8% in July unchanged from June, but jobless claims fell by 29,000 to 1.4m, the lowest since February 2009.
Australia’s GDP accelerated to 0.6% (q/q sa) in 2013Q2, up from 0.5% in the previous quarter. Consumption and inventories were positive contributors to growth while strong private investment was fully offset by declines in public investment.
Developing Economies…East Asia and Pacific: Philippines’s annual headline inflation eased further in August to 2.1% (y/y), down from 2.5% (y/y) in July well below the Central Bank’s target range of 3 to 5%, owing to reduced cost of food, housing, and transport. Core inflation, which excludes selective food items and energy, also eased to 1.9% (y/y) in August, down from 2.3% (y/y) in July.
Latin America and the Caribbean: Brazil’s trade balance improved in August with a surplus of US$1.2bn, compared with a deficit of US$1.9bn in July; however, this was much lower than the trade surplus of US$3.2bn recorded a year ago, resulting from a slowdown in exports.
South Asia: The IMF has approved a three-year $6.6bn loan for Pakistan to stave off a balance of payments crisis as foreign reserves have sunk to about six weeks worth of imports. The IMF loan, of which $540m will be disbursed immediately, should trigger the release of another $6bn in funds from other international lenders over the next three years.