US 10-Year Treasury Yield Rises 1.9 Basis Points to 4.5%, Two-Year Rate Climbs 2.9 Basis Points to 4.06% Early Thursday

US Treasury Yields Rise Pre-Bell as Investors Await Fed's Preferred Inflation Data Amid Renewed Tensions in Iran

Commerzbank on Overnight News

Commerzbank in its "European Sunrise" note of Thursday highlighted:Markets: United States Treasury yields open higher in Asia, continue to increase with the 10-year back above 4.5%. Brent surges to US$98/barrel after U.S. strikes on Iran. Asian equity indexes and U.S. futures are down. The euro (EUR) drops below US$1.159.Fed: Federal Reserve Governor Lisa Cook is prepared to raise rates if inflation doesn't ease as expected. Minneapolis Federal Reserve President Neel Kashkari says inflation fight takes priority and unanchored expectations could require stronger policy action. Federal Reserve Vice Chair Philip Jefferson warns of inflation from energy price increases.U.S.: Treasury Secretary Bessent believes prices are "transitory;" expects oil to be lower than pre-conflict levels when it ends.Iran war: U.S. carries out strikes against Iranian military site. President Donald Trump says "we're not satisfied with Iran deal," warning that if negotiations fail U.S. may "finish the job."==EUROPE:ECB: European Central Bank Governing Council member Philip Lane warns that inflation could remain elevated even after Iran conflict ends.EU broadens import quotas and tariffs against China. Plans a strategy to reduce reliance on U.S. tech companies.

Surge In Population Between 2022 and 2024 Has Led To Recent Rise In Canadian Youth Unemployment, says BMO

Bank of Canada Deputy Governor Nicolas Vincent's speech on Tuesday fretted about the rise in the country's youth unemployment, says Bank of Montreal (BMO).Vincent cited a variety of factors, including structural issues like Artificial Intelligence and United States tariffs -- which, he suggested the BoC couldn't do much to address withmonetary policy, noted the bank.But Vincent also mentioned: "Between 2022 and 2024, there was a large influx of young people from abroad. This intensified competition in Canada for lower-skill and entry-level jobs." That seems to be the dominant factor at work here.The youth jobless rate was actually pressing all-time lows of around 9% in 2022, until the surge in population took hold, noted BMO.The number of people aged 15-24 increased by almost 12% in a two-year period, more than triple the growth rate seen at any time for that group in the past 50 years. Meantime, the population of those aged 45 or over saw steady growth through that episode, noted the bank.