US Treasurys have outperformed other major sovereign bond markets this year, driven by expectations of Federal Reserve interest rate cuts. Treasurys have returned 5.8% in 2025, the highest among the 15 largest debt markets, as the yield advantage over global peers fell to a three-year low.

The UK and US vowed to deepen financial cooperation as Prime Minister Keir Starmer prepares to host President Donald Trump for a three-day state visit. Blackstone pledged to invest £100 billion in UK assets over the next decade, while US officials signaled deals in tech and nuclear cooperation alongside at least $10 billion in investment commitments. Talks also continue over easing tariffs on British steel and Scotch whisky, though progress remains uncertain.

A federal appeals court has ruled that US President Donald Trump cannot dismiss US Federal Reserve Governor Lisa Cook before the US Federal Open Market Committee meeting, allowing her to participate in the two-day event. Trump attempted to fire Cook over alleged mortgage fraud, which she denies, but the court upheld a lower ruling preventing her removal while her lawsuit against Trump proceeds.

President Donald Trump has suggested that US public companies switch from quarterly to semiannual earnings reporting, a system in place since 1970. The change, which would require Securities and Exchange Commission approval, is aimed at reducing costs and easing short-term pressures. Supporters say it could encourage longer-term planning, while critics warn it would reduce transparency and limit timely information for investors.

Goldman Sachs strategists George Cole and William Marshall warn that the five-year part of the bond curve may face turmoil, particularly in Japan and Germany. Five-year notes have been favored for their resilience to monetary policy and inflation risks, but a shift toward tighter monetary policy in Japan and the eurozone may make them vulnerable, they said.

Foreign investors are showing renewed interest in China's $19 trillion stock market, driven by advancements in AI, semiconductors, and innovative drugs. The shift follows a period when the market was considered "uninvestable" due to economic concerns and US-China trade tensions. The Shanghai Composite Index has reached a decade high, and Hong Kong stocks have hit a four-year high.

MMSB Murmurs Foreign investors once branded China’s equity markets “uninvestable,” but they’re creeping back as AI breakthroughs, biotech plays and a tariff truce reset the narrative.

The big question is whether this rerating sticks or just papers over a fragile economy still wrestling with deflationary pressure and weak capital inflows. -- Matt

Active fund managers are facing a new challenge from private-market investments, particularly as these investments seek to enter the target-date fund market popular among 401(k) savers. While active managers have traditionally competed with passive funds on fees, private funds often have even higher fees, posing a potential issue for plan sponsors focused on cost.

Researchers at Ohio State University have developed a nuclear propulsion system that could reduce travel time to Mars and enable deeper space exploration. The centrifugal nuclear thermal rocket uses liquid uranium to heat propellant directly, making it more efficient than current technologies. The research, partly funded by NASA, suggests the system could reduce a round trip to Mars from three years to one.