Key Takeaways
- The US 3-Year Note sale saw a lower high yield rate of 3.669%, down from 3.891%, alongside a slightly improved bid-cover ratio of 2.53.
- WTI Crude Oil prices dropped after reports indicated Russia is considering an air-truce offer to former U.S. President Trump regarding the conflict in Ukraine.
- Brazilian President Lula da Silva has asserted that critical minerals are exclusive to Brazil and plans to challenge trade tariffs at the World Trade Organization (WTO).
- Pfizer (PFE)'s CFO indicated the company plans additional cost reductions over the next two years, building on existing initiatives.
- OpenAI has released new open models aimed at competing with rivals like China’s DeepSeek, intensifying the artificial intelligence market race.
US Treasury Auction Shows Improved Demand
The latest US 3-Year Note sale concluded with a high yield rate of 3.669%, a notable decrease from the previous auction's 3.891%. Demand for the notes appeared robust, as indicated by an improved bid-cover ratio of 2.53, slightly up from 2.51 previously. Direct accepted bids stood at 28.1%, a minor dip from 29.4%, while indirect accepted bids remained largely stable at 54.0% compared to 54.1%. The "When Issued" (WI) rate was recorded at 3.662%.
Geopolitical Developments Impact Energy Markets
Reports circulating suggest that Russia is weighing a proposal for an air-truce with Ukraine, potentially involving former U.S. President Donald Trump. This development has had an immediate effect on energy markets, with WTI Crude Oil prices dropping following the news. The situation highlights the ongoing sensitivity of global oil prices to geopolitical shifts and potential de-escalation efforts in Eastern Europe.
Brazil's Assertive Stance on Trade and Resources
Brazilian President Luiz Inácio Lula da Silva has taken a firm stance on national interests, declaring that critical minerals are exclusive to Brazil. He emphasized that Brazil will use "all available methods, including the WTO, to protect national interests" against trade tariffs. Brazil plans to formally challenge newly imposed U.S. tariffs at the World Trade Organization (WTO), which include a 50% tariff on a range of Brazilian exports like coffee, beef, and petrochemicals.
President Lula also claimed that the global adoption of Pix, Brazil's instant payment system, could threaten credit card companies' market shares, suggesting this is a factor behind U.S. aggression toward Brazil. He further stated that Brazil aims to engage in trade with all countries and asserted, "Nobody gives me lessons in negotiation." Lula also claimed that Trump had no authority to announce tax changes.
Corporate News: Pfizer and OpenAI
Pfizer (PFE)'s Chief Financial Officer has indicated that the pharmaceutical giant plans additional cost reductions over the next two years. This comes as part of a broader strategy to navigate declining sales from pandemic-era products and looming patent expirations, with the company targeting $7.7 billion in cumulative net savings by 2027. These cuts are focused on selling, informational, and administrative expenses, with $500 million earmarked for R&D reorganization by the end of 2026, with savings to be reinvested into the pipeline.
In the technology sector, OpenAI has released new open models designed to compete directly with offerings from companies like China’s DeepSeek. This move intensifies the competition in the rapidly evolving artificial intelligence (AI) market, where companies are vying for market share and technological leadership.
Regional Alert: New York City Earthquakes
The New York City region experienced a second earthquake in three days. This follows recent tremors, with reports of an earthquake felt across New York City and surrounding areas. The recent seismic activity has drawn attention, although no significant damage has been widely reported.
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.