Trouble reading this briefing? View as webpage.

Bond selloff.

Asian stocks declined today, trimming a first-half rally in global equities. Treasury yields steadied following a surge Thursday on bets for further rate hikes, which cast a shadow over markets. Asian stocks were set for a mixed open on the last day of the quarter after a choppy session for US equities, while Treasury yields soared on bets on further tightening by the Federal Reserve. Contracts for benchmarks in Hong Kong and Japan posted modest declines while those for Australia pointed to a small gain. As the first half draws to a close, Japan’s Topix has ratcheted up a gain of more than 20%. In the US a selloff in bonds saw two-year yields jump 15 basis points as investors moved closer to Fed’s view for tighter monetary policy in the coming months.

Fed Chair Jerome Powell said the decision not to raise rates this month was just a continuation of the Fed’s moderation in the pace of rate rises. Photo: Tom Williams | Zuma Press

Powell says likely need two or more hikes to cool inflation

Federal Reserve Chair Jerome Powell said at least two interest-rate increases are likely necessary this year to bring the inflation rate down to the US central bank’s 2% target and that acting at consecutive policy meetings isn’t “off the table.” (Bloomberg Economics - Central Banks | Jun 29) see also Powell says Fed’s inflation fight could take years (The Wall Street Journal | Jun 28)

US banks scramble on research fees as a reprieve on European rules runs out

Wall Street banks and brokerages are in a last-minute scramble to meet a July 3 deadline to charge investors for research reports, bankers and others in the industry said, a requirement that threatens their European business if they fail to comply. (Reuters | Jun 28)

Money markets are giving Fed room to keep shedding Treasuries

Money markets are giving the Federal Reserve a green light to continue shedding Treasury securities from the massive pile accumulated as part of its pandemic response. (Bloomberg Markets | Jun 27) see also Treasury-market liquidity, long in decline, is improving (Bloomberg Law | Jun 26)

Supreme Court to hear case that could block Democrats' plans to tax the rich

The Supreme Court said Monday that it will hear arguments in a tax law case that could yield billions of dollars for large corporations, block Democrats’ proposals to tax wealthy Americans, and upend longstanding chunks of the tax code. The court, in an unsigned order, said it would decide a case that asks whether people and companies have to receive, or realize, income for it to be taxed under the 16th Amendment. Arguments will happen in the court term that starts in October. (The Wall Street Journal | Jun 26)

Bond market faces longest inversion in US history

Investors are conceding that the Fed is now intensely focused on fighting inflation and less concerned about higher interest rates breaking the US economy. That suggests the extraordinary bond market volatility of the past 15 months is set to persist, as 80% of respondents to the midyear Markets Live Pulse survey predict the US yield curve will remain inverted into 2024. (Bloomberg Markets | Jun 26)

About 19% of CISOs at publicly traded companies also have responsibility for IT, while among private companies, 46% of CISOs hold the double role. Photo: Getty Images

Security chiefs take on IT roles as more infrastructure moves online

Stay-at-home orders during the Covid-19 pandemic spurred new cloud computing and remote-technology setups, increasing company exposure to hackers. As a result, some corporate cybersecurity chiefs are also taking on the leadership role for all of information technology.

— The Wall Street Journal

Demand for integrated surveillance doubles as regulators up pressure

Last year, the SEC issued a record $6.4 billion in penalties, representing a 9% increase on the previous year. Fines totaling $1.1 billion were handed out to 16 Wall Street players for failing to monitor their workers or stepping in to prevent communications via unauthorized messaging apps (such as WhatsApp).

— The Trade (UK)

US warns of huge cyber-espionage campaign

One of the largest known cyber-espionage campaigns has hit companies running critical US infrastructure, according to Western intelligence agencies and Microsoft. The group has carried out its work by exploiting vulnerabilities in cybersecurity platform FortiGuard, the Financial Times reports.

— World Economic Forum

Sign up for CISA Alerts

Report a Cybersecurity Incident: Report anomalous cyber activity and/or cyber incidents 24/7 to report@cisa.gov or (888) 282-0870.

• Report an incident
• Report phishing
• Report a vulnerability

Contact CISA: https://www.cisa.gov/about/contact-us

Illustration by María Medem | The New Yorker

The case against travel

Nearly everyone likes to travel; and yet people say it, because, for some reason, they pride themselves both on having traveled and on the fact that they look forward to doing so. Travel turns us into the worst version of ourselves while convincing us that we’re at our best.

— The New Yorker

75% of C-suite leaders may quit for a job with better well-being support

Despite efforts from managers and executives to provide a working environment that is stocked with resources and initiatives to promote mental health, companies are still dealing with the consequences of having unhappy people on staff at every level.

— CFO

How to prepare your digital life for your demise

Everyone has a digital footprint that doesn't expire when you do. Thankfully, more platforms are jumping on the grim reaper's bandwagon, giving family, friends, and legal professionals access to your various online accounts. Here's how to make sure loved ones can manage your posthumous affairs.

— PC Magazine