Commerzbank Says Treasuries Rally as US Equity Futures Decline, Oil Prices Slip, US Dollar Lower

06:19 AM EDT, 10/13/2026 (MT Newswires) -- Treasuries rally as risk aversion spreads across Asian markets on Tuesday, weighing on US equity futures and pushing Brent crude below $106 a barrel, according to Commerzbank Research in a note. Cleveland Federal Reserve President Beth Hammack said that monetary policy must stay restrictive to bring inflation down to 2%, citing widespread price pressures, wrote Commerzbank in the note. Hammack supports smaller, more frequent rate adjustments to minimize risks and notes that her estimate of the neutral interest rate is among the highest on the FOMC. The International Monetary Fund upgrades its global growth forecast to 3.1% for this year and projects 3.4% growth in 2027, while warning that economic resilience is facing mounting pressure. It identifies rising bond yields as the biggest emerging threat to global financial stability and calls on central banks to maintain restrictive monetary policies. The US dollar trades lower, said the bank. In Europe, Bank of England policymaker Megan Greene warns that repeated supply shocks pose significant challenges, stressing that the main risk is failing to keep monetary policy sufficiently restrictive. She urges policymakers to act pre-emptively to curb second-round inflationary effects, added Commerzbank. Politico reports that Germany, Belgium and Italy are calling for an "emergency brake" mechanism to prevent the adoption of new European Union legislation. France's central bank (BdF) holds its forecast for 0.1% gross domestic product growth in the third quarter, as business uncertainty climbs to its highest level since April. BdF chief Emmanuel Moulin says the economy remains resilient despite the energy shock.