UK inflation eased to 3.6% in October, a slight decline but still above forecasts, in the final data release before UK Chancellor Rachel Reeves delivers a Budget aimed at lowering living costs. Core inflation rose 3.4% and services inflation dipped to 4.5%, keeping pressure on the UK Treasury as Reeves considers measures such as cutting VAT on energy bills to curb price growth. Economists said further Bank of England rate cuts will depend heavily on the Budget's impact on inflation.

Richmond US Federal Reserve President Thomas Barkin has emphasized the importance of upcoming economic data in guiding the central bank's decisions at its December meeting, noting the challenge of assessing inflation and unemployment without official statistics following a federal shutdown.

China's 10-year government bond yield is approaching Japan's for the first time, raising concerns about deflation in China. The yield on China's 10-year bond is near a two-month low due to weak economic data and stock market losses, while Japan's yield has surged to its highest since 2008 amid inflation worries and increased government spending.

China is expected to keep its benchmark lending rates unchanged for the sixth consecutive month, reflecting a period of rate stability amid ongoing economic uncertainty. According to a Reuters survey, all 23 respondents anticipate that both the one-year and five-year loan prime rates will remain at 3.0% and 3.5%, respectively.

Foreign holdings of US Treasurys fell slightly in September, the first decline in six months, to $9.25 trillion. However, Japan increased its holdings to $1.19 trillion, the highest since August 2022. China's holdings dropped to $700.5 billion.

Acting US Commodity Futures Trading Commission Chairman Caroline Pham has advocated a technology-neutral and activity-based regulatory framework to attract innovative trading venues and support startups. Pham emphasized the need for durable and flexible regulations to avoid the unintended consequences of the Dodd-Frank Act, such as market fragmentation.

Basel Committee on Banking Supervision Chair Erik Thedéen has said global rules requiring banks to hold substantial capital against crypto assets need revising due to the rapid growth of stablecoins. The US and the UK rejected the rules, set to take effect in January, as they would require a 1,250% risk weighting for volatile digital assets.

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