The Bank of England is expected to scale back its quantitative tightening program, reducing annual gilt sales to about £70 billion from £100 billion, amid concerns that heavy long-dated issuance is fueling volatility. The Monetary Policy Committee is forecast to hold rates at 4% in a 7-2 vote, with inflation stuck at 3.8% and policymakers wary of easing too quickly. While Governor Andrew Bailey has signaled the path for rates is still downward, economists expect a more cautious tone as the BoE balances inflation risks, market stability, and political pressure ahead of November's budget.

The Bank of Japan is expected to maintain its benchmark interest rate at about 0.5% during a two-day policy meeting this week, citing uncertainty regarding the effects of US import tariffs on the Japanese economy. Many BOJ officials are awaiting more economic reports for more clarity.

The Central Bank of Argentina has intervened to support the peso for the first time since President Javier Milei partially floated the currency in April, selling $53 million as the peso hit the lower limit of its exchange-rate band. The intervention comes amid political turmoil and a 12% decline in the peso in the last month.

The US Federal Reserve has implemented its first interest rate cut since December, reducing its policy rate by 25 basis points to a range of 4%-4.25%. The move signals a cautious start to an easing cycle, with the Fed tempering expectations by highlighting a data-driven, meeting-by-meeting approach. The cut led to a muted market reaction, with the Nasdaq and S&P 500 closing lower and Treasury yields climbing.

Asian bonds have posted their first monthly foreign inflow since May, with net purchases totaling $311 million, driven by expectations of US Federal Reserve rate cuts to support a cooling labor market. Indian and Malaysian bonds attracted $773 million and $721 million, respectively, while South Korean, Indonesian, and Thai bonds experienced outflows.

Malaysian sovereign bonds are under pressure as corporate debt issuance is expected to surge toward the end of the year, potentially eroding demand for government debt. The bid-to-cover ratio for government bonds has already dropped to its lowest this year, reflecting diminished expectations for rate cuts.

The Fed's quarter-point rate cut is expected to exert pressure on Asian currencies, with analysts warning that the region's FX markets are unlikely to escape the impact of a stronger dollar. Wells Fargo Securities points to the Korean won, Indonesian rupiah, and Philippine peso as particularly sensitive to further dollar appreciation, especially given recent policy moves in Indonesia.

Bank Indonesia's unexpected rate cut of 25 basis points to 4.75% has led economists to anticipate more aggressive easing to boost economic growth. The move has caused the rupiah to fall and the stock index to reach a record high. The central bank has cut its main interest rate by 150 basis points since September.

Lloyd's of London has witnessed a notable resurgence in its traditional "Names" - wealthy individuals who personally back insurance policies. After nearly vanishing in the 1990s due to a crisis that led to the introduction of corporate capital, the number of private investors has rebounded. High net worth individuals now contribute £5 billion in capacity, nearly doubling from 2016.

The SEC has approved rule changes that allow national securities exchanges to use generic listing standards for new spot cryptocurrency and other commodity ETFs. This decision marks a major shift from the previous case-by-case approval process and is expected to enable dozens of new spot crypto ETFs, including those tracking solana and dogecoin, to launch more quickly.

Join us in Brussels on 12 November 2025 to celebrate 20 years of AFME's European Government Bond Conference. Bringing together 120+ professionals, this flagship event offers expert-led panels, keynotes, and roundtables focused on the latest developments impacting European Government Bond markets and Debt Management Offices. Designed with input from AFME members, the programme explores key market trends, regulatory updates, and evolving policy priorities. Held at the Radisson Collection Hotel, the conference provides valuable insights, CPD hours, and excellent networking opportunities for senior stakeholders across the European public debt and capital markets landscape.