Key Events This Week: FOMC Minutes, PMIs, Industrial Data; WalMart And Home Depot Earnings

With global equities near record highs, DB’s Peter Sidorov warns bond markets face tougher “August crosswinds.” While expectations for an imminent Fed rate hike have eased, the U.S. yield curve has steepened sharply amid higher oil prices, elevated fiscal deficits, and capital demand linked to the AI boom—pushing yields up and driving a broad sell-off. The report notes 10-year OAT yields hit their highest level since 2009, and 30-year bund yields reached a post-2011 high of 3.73%. Key catalysts this week include the flash August PMIs on Friday and minutes from the July FOMC meeting on Wednesday, alongside China’s activity data and a 20-year Treasury auction that could be the priciest in 25 years.