Treasury Secretary Bessent indicated that fiscal consolidation measures are expected to be announced shortly and signaled plans to expand the scale of long-term Treasury buybacks. Markets are focused on interest-rate trends, movements in the dollar-yen exchange rate and oil prices.
US Treasury Secretary Bessent said he is prepared to expand buybacks of long-term Treasuries and stated that fiscal consolidation measures are expected to be announced shortly. Although no specific announcement date has been given, measures addressing both spending cuts and revenue increases are expected to be considered.
The US federal government’s total debt is reported to have exceeded $40 trillion as of 18 August, according to Treasury data, and views are spreading that pressure from the fiscal deficit could affect long-term interest rates and currency movements. Against this backdrop, selling pressure on the dollar and upward pressure on the yen have also been noted.
NVIDIA’s FY27 Q2 results are expected to show revenue and EPS well above market expectations, with growth in the ACIE market driven by expanding AI demand expected to be a key focus. Meanwhile, the SOX Index is continuing to decline from its recent high, raising the possibility that individual stocks could weigh on the broader market.
The dollar-yen exchange rate fell temporarily after the intervention but has returned to a period of stagnation, while market uncertainty is rising ahead of the Jackson Hole meeting. This week is expected to bring several potential market turning points, including the announcement of the fiscal consolidation measures, a speech by Fed Chair Warsh and the release of PCE and GDP data.