UBS On-Air: Market Moves

US Treasury Secretary “House” Bessent faces something of a housing problem. Despite Bessent’s efforts, US mortgage rates rose above 7% yesterday. The exact level is not important (except to the media, ever enraptured by round numbers). The increase erodes the spending power of new homeowners—and critically does so in a way that real income data does not capture. Inflation figures use a fictional housing cost measure, which hides the damage higher mortgage rates might do.

US 10-year Treasury bond yields moved sharply above 5%, and the USDJPY exchange rate is back above 158. US Treasury Secretary “House” Bessent seems to be demonstrating the house does not always win. For Gen Z bond traders, a 0.15-percentage point rise in yields is scary. For Gen X bond traders, it is mild. A variety of concerns came together to worry the markets.

Markets have not fully regained their earlier optimism bias, but are a little more cheerful. Yesterday, US President Trump signed an agreement essentially reaffirming the status quo with Greenland and Denmark—but spun it as change. Could a similar course be pursued with Iran? Trump’s UN speech was aggressive but both the US and Iranian regimes make frequent use of hyperbole. After the speech, there was playground diplomacy, with Qatar shuttling between the US and Iran carrying notes.

Open enrollment season is right around the corner, and for many employees, that means making decisions about healthcare, insurance, retirement savings, and other workplace benefits. But how much thought should we really put into those decisions each year? Ainsley Carbone, Retirement Strategist, and Justin Waring, Head of UBS Wealth Way Strategy & Solutions, both with the UBS Chief Investment Office Global Investment Management team, walk you through these considerations. Host: Daniel Cassidy

This month’s episode focuses on investing in global transitions, bringing together experts from UBS Global Wealth Management and AGF. Featured are Melissa Amler, Senior Sustainable & Impact Investing Platform Specialist with UBS Global Wealth Management, along with Martin Grosskopf, Portfolio Manager and Director Sustainable Investing at AGF.