treasury

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Schwab's Unrealized Bond Losses Widen to US$19.4 billion

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Schwab reports US$19.4 billion unrealized losses (pre-tax) on US mortgage securities held under held-to-maturity accounting. Plus US$11.8 billion unrealized losses on available-for-sale portfolio. Compares to US$28.3 billion common equity & US$9.7 billion average tangible equity. "The low yield on HTM bond portfolios could weigh on the returns at Schwab and many banks for years". "Schwab’s deposit base fell 30% in the past year to US$291 billion".

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Canada inflation jumps to 4%. October rate hike bets rise

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“Canada's annual inflation rate in August jumped to 4.0% from 3.3% in July on higher gasoline prices, data showed on Tuesday, a sign the central bank may be forced to raise interest rates yet again after 10 hikes since March of last year.”