October 2nd – Top Morning Stories

1/ US


- Treasurys fall; one-month T-Bill yield spikes - Market Watch - By Ben Eisen


One-month Treasury bill yields spiked on Tuesday on fears the short-term securities wouldn’t get paid because of the debt ceiling, even as the longer end of the yield curve rose on expectations of a timely solution.


2/ China


- ADB cuts Asia growth forecasts to 6% as India, China slow - The Economic Times


The Asian Development Bank cut its economic growth forecast for developing Asia on Wednesday, citing weakness in region’s two largest economies China and India and jitters over plans to scale back US stimulus that destabilized financial markets.


3/ Eurozone


- Europe’s banks undervalued, says ECB deputy Vítor Constâncio - FT - By Patrick Jenkins and Michael Steen in Frankfurt


Europe’s banks are just as strong as US rivals and are being unjustly undervalued by investors, according to the vice-president of the European Central Bank – the man in charge of setting up safety testing of the eurozone’s banking system.