Could the 10-Year Treasury Yield Go Back Up To 5%? By Hardika Singh

Yields of 5% on the 10-year aren't out of the question. Meanwhile, Detroit's business-district transformation offers lessons to other cities struggling to revive their empty downtowns. And analysts say there could be room for both UBS and its smaller rivals to grow. Read on for this news and more.

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Top News Path for 10-Year U.S. Treasury Yield to Hit 5% Is Possible but Tricky

A recent jump in U.S. government-bond yields has left investors pondering whether the 10-year Treasury yield could reach 5% as expectations for interest-rate cuts continue to be scaled back. The yield hit a five-month high of 4.696% last week, according to Tradeweb, after strong inflation data for March increased the prospect that the Federal Reserve could delay rate cuts until later in the year.

Driebusch's Take String of Successful IPOs Suggest Risk Tolerance is Rebounding

Cybersecurity software company Rubrik is listing its shares in a long-awaited IPO this week . It's the latest in a string of high-profile initial public offerings, most of which have gone surprisingly smoothly, begging the question: Has investor risk-tolerance finally recovered?

U.S. Economy Reversing the Real-Estate Doom Loop Is Possible. Just Look at Detroit.

Barely a decade after Detroit declared bankruptcy, the city is emerging as America's most unlikely real-estate boomtown . A development frenzy has gripped Detroit's central business district. Big companies, including Ford and developer Related Cos., are spending billions of dollars on office buildings and other properties.

Financial Regulation UBS's Swiss Rivals Hope Credit Suisse Hires Will Win Wealthy Clients

UBS Group's UBS smaller Swiss rivals have been on a hiring spree for former Credit Suisse employees, hoping to take a bigger slice of the wealth-management market. Credit Suisse's downfall and its subsequent rescue deal by UBS last year created a potential opportunity for the likes of EFG International and Vontobel Holding to poach advisers and the assets they managed.

Forward Guidance Tuesday (all times ET)

4 a.m.: Eurozone Flash PMI for April

7:15 a.m.: Bank of England's Pill speaks to University of Chicago Booth School of Business, London

10 a.m.: U.S. new home sales for March

10 a.m.: Richmond Fed Survey of Manufacturing Activity


8:30 a.m.: U.S. durable goods report for March, advance

1:30 p.m: Bank of Canada summary of monetary policy deliberations

Research Eurozone Consumer Sentiment Set to Brighten Further

Eurozone consumers should keep feeling better about the economy and their own financial situation as inflation eases further, Pantheon Macroeconomics' Melanie Debono said. Confidence ticked higher in the bloc this month, figures showed Monday, though it remains well below the prepandemic average. It should continue to improve over the coming months as wages rise and household lending rates ease in anticipation of a cut to rates by the European Central Bank, Debono wrote in a note. "We remain hopeful that a rebound in consumer spending, thanks to the recovery in real household disposable income, will support GDP growth over the coming quarters," she said. - Joshua Kirby

Basis Points Market strategist David Rosenberg advises clients that Canadian stocks and bonds are set to outperform their U.S. counterparts as the Bank of Canada prepares to cut interest rates while the Fed holds steady. In his newsletter, Rosenberg identifies six periods, dating back to the 1950s, where the BOC eased and Fed held tight. The data indicate that Canadian stocks tended to outperform U.S. equities during those periods, with Toronto's main stock index climbing by a median 21%, or six percentage points better than the S&P 500.- Paul Vieira The Bank of England is expected to start cutting interest rates before the Fed as U.S. inflation remains sticky and the economy stays resilient, ING analysts say in a note. The expected divergence in the U.S. and U.K. rate-cut cycle is likely to cause U.K. gilt yields to decline faster than U.S. Treasury yields, ING says.- Miriam Mukuru The eurozone's economic recovery continued to pick up pace at the start of the second quarter though growth continues to trail far behind the U.S., opening the way for a divergence between the world's leading central banks. - Joshua Kirby The European Central Bank will take account of the Federal Reserve's progress in lowering inflation when it decides the pace of cuts to its key interest rate after a first move in June, its vice president said in an interview published Tuesday. - Paul Hannon Singapore's inflation cooled more than expected in March , continuing a bumpy trajectory, as prices in key categories like food, transport and utilities rose at a slower pace. - Kimberley Kao The U.S. military commander in the Indo-Pacific said he didn't believe the economic growth figures reported by China and described the country's economy as failing. - Peter Landers Bank of Japan Gov. Kazuo Ueda reiterated Tuesday that the bank would raise interest rates further if inflation grows as the central bank expects. - Megumi Fujikawa About Us

WSJ Pro Central Banking brings you central banking news, analysis and insights from WSJ's global team of reporters and editors. This newsletter was compiled by markets reporter Hardika Singh in New York. Send your tips, suggestions and feedback to [].

This article is a text version of a Wall Street Journal newsletter published earlier today.

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04-23-24 0801ET