Fed's Williams said he is monitoring growth in centrally cleared repo transactions.

Preliminary shipping data published Tuesday showed commodity-carrying transits through the Strait of Hormuz fell to two vessels on Monday from 10 the previous day. The figures exclude ships that switched off AIS transponders. Kpler reported a Panama-flagged Supramax bulk carrier laden with ore and a Liberia-flagged bulk carrier entered the waterway via unknown routes. Separately, Marisks Intelligence said a crude oil tanker and an LPG carrier were attacked while transiting the strait.

RSM analyst Thomas Pugh said August public net borrowing rose sharply YoY, complicating the upcoming budget and making an October tax increase likely. Fiscal-year-to-date net borrowing is £77.3 bln, well above the Office for Budget Responsibility’s £69.2 bln forecast. With inflation rising and the budget likely to include additional spending commitments, borrowing is expected to continue materially outpacing forecasts. Investors are watching each borrowing print for signs of the government’s fiscal discipline amid elevated gilt yields.