Bad sentiment from UK Gilts mess-up and rising bond yields – Market wrap for the North American session - September 2

[Ben Graham]

Log in to today's North American session Market wrap for September 2

North American markets reopened today after the US and Canadian Labor Day holidays, which saw global Markets trade in super thin volumes.

Action did pick-up with the latest run on UK Gilts (UK Gov. Bonds), which have prompted another wave of selling in global long-term yields.

After Spain and France in the past two weeks, it is now the Gilts that have seen their yields rise sharply, dragging upwards the Japanese 20 and 30Y Yields to their highest since 1999.

I strongly invite you to check out our latest piece to know more on why government yields are rising so much despite rumours of Interest rate cuts:

Read More: Why are government bond yields rising so much as of late?

This rise in yields, combined with the contracting US Manufacturing PMI release didn't help Equities that finish down on the session (they still rebounded from their lows towards the afternoon).

However, metals have loved this move, with Silver breaching the $40 level for the first time since 2011, on the road to its all-time highs, and Gold freshly breaking $3,600.

Cryptos are also appreciating from the downbeat looks on fiat currencies, with the ongoing run on government bonds – This is a story to watch closely in the upcoming period.

One thing to consider for this week, is the start of September creates strong and unusual flows as traders place their positions for the final four months of the year.

Furthermore, markets will stay thin in the waiting of Friday's infinitely-highly expected Non-Farm Payrolls, leading to bigger movements.

Cross-Assets Daily Performance

Cross-Asset Daily Performance, September 2, 2025 – Source: TradingView

Gold is up 3.60% since Friday! And volatility finally makes its way back in markets – Spot how many times flows changed in the past 24 hours!

Spot the shiftsmarket open around 18:00 yesterday, overnight, ISM Manufacturing and this afternoon!

A picture of today's performance for major currencies

Currency Performance, September 2 – Source: OANDA Labs

Volatility is back strong in FX, and the US Dollar stays on top.

Discover its levels and fundamentals on our latest DXY (Dollar Index) piece.

A look at Economic data releasing in tonight and tomorrow's sessions

For all market-moving economic releases and events, see the MarketPulse Economic Calendar.

Despite some expectations that volatility decreases tomorrow as markets should calm ahead of the upcoming NFP, still expect volatile movements – Look at news on government bonds and look at Gold which will track these ongoing flows closely.

Don't forget the Eurozone PPI data overnight, US JOLTS (job openings) at 10:00 A.M., and the few central bank speakers tomorrow (Musalem and Kashkari for the FED, Breeden, Mann for the BOE and ECB President Lagarde Speaking at 3:30)

And AUD traders should also stay awake for the Australian PMI and GDP data tonight at 19:00 and 21:30

Safe Trades!

Opinions are the authors'; not necessarily that of OANDA Business Information & Services, Inc. or any of its affiliates, subsidiaries, officers or directors. The provided publication is for informational and educational purposes only.
If you would like to reproduce or redistribute any of the content found on MarketPulse, an award winning forex, commodities and global indices analysis and news site service produced by OANDA Business Information & Services, Inc., please refer to the MarketPulse Terms of Use.
Visit https://www.marketpulse.com/ to find out more about the beat of the global markets.
© 2025 OANDA Business Information & Services Inc.