Key Takeaways
- A new $42 billion 10-year Treasury note auction (August 2035) is expected to price with a 4.125% coupon, a slight decrease from the current May 2035 issue's 4.25% coupon.
- The White House is set to implement new sanctions against Russia starting Friday, August 8, 2025, despite U.S. Special Envoy Steve Witkoff's recent "smooth" meeting with Russian President Vladimir Putin.
- An impending White House executive order targets major financial institutions, including JPMorgan (JPM) and Bank of America (BAC), over claims of "politicized or unlawful debanking" practices.
The financial markets are closely watching the upcoming $42 billion auction of the new 10-year Treasury note, set to be sold today. This August 2035 note is anticipated to carry a 4.125% coupon, a slight reduction from the 4.25% coupon on the current May 2035 issue. The when-issued (WI) yield for the new note stands at 4.245%. For context, the May 2035 issue has seen its yield fluctuate significantly, trading as high as 4.625% on May 22 and as low as 4.18% just yesterday.
Meanwhile, geopolitical tensions remain high as the White House prepares to impose new sanctions on Russia this Friday, August 8, 2025. This development follows a meeting in Moscow on Wednesday between U.S. Special Envoy Steve Witkoff and Russian President Vladimir Putin, which White House officials characterized as "smooth" and productive. Despite the positive tone of the discussions and Russia's expressed desire to continue engagement with the United States, the sanctions are proceeding. The new measures are primarily aimed at Russia's "shadow fleet" of oil tankers and other entities accused of circumventing existing sanctions, with President Donald Trump issuing an ultimatum for Russia to agree to a ceasefire in Ukraine by the Friday deadline. Reports indicate that President Trump has also signed an executive order to impose an additional 25% tariff on India for its purchases of Russian oil.
Domestically, the White House is preparing an executive order targeting banks over allegations of discrimination. President Trump claims that major financial institutions, specifically naming JPMorgan Chase & Co. (JPM) and Bank of America Corp. (BAC), have denied him and his supporters banking services for political reasons. A draft of the executive order, reviewed by Reuters, directs regulators to investigate banks for "politicized or unlawful debanking" practices. The order could authorize monetary penalties or other disciplinary actions against violators, signaling increased scrutiny on the banking sector.
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications.