The U.S. Senate Banking Committee Advances the "Financial Transparency and Regulatory Compliance Act"

US President Donald Trump has stated that the United States is not currently seeking to extend its memorandum of understanding (MOU) with Iran. Trump noted that Iran wants to reach an agreement but will not accept what he views as the "necessary" terms of such a deal. He also reiterated his earlier proposal to declare the Strait of Hormuz as US territory, and reaffirmed America’s control over the strategic waterway. Trump further claimed that the Strait of Hormuz remains open, and oil prices are trending lower.

According to a report by Iran’s Press TV, a regional intelligence source revealed that the Pentagon (U.S. Department of Defense) has concluded that none of the existing military plans can guarantee the safe passage of vessels through the Strait of Hormuz or ensure stable energy supplies in the region. The official noted that this assessment exposes a strategic deadlock Washington faces in the Persian Gulf, with the situation being extremely severe. The source stated: "The Pentagon’s assessment is that currently no military plan has sufficient political and security capabilities to keep the Strait of Hormuz open, ensure the safe passage of vessels, and maintain energy stability." This is a major setback for U.S. military planners, who have long regarded the Strait of Hormuz as a vital chokepoint requiring a continuous naval presence. The U.S.’s inability to control this strategic waterway has severely undermined Washington’s strategic posture in the region and exposed the limitations of U.S. military power when facing Iran’s growing asymmetric warfare capabilities.

U.S. Treasury yields broadly climbed on Monday local time. The 30-year U.S. Treasury yield, which is typically sensitive to geopolitical events, rose more than 4 basis points to 5.311%, hitting its highest level since June 2007. The 10-year U.S. Treasury yield, a key benchmark for mortgages, auto loans and credit card debt, gained more than 2 basis points to 4.724%. The 2-year U.S. Treasury yield, which usually moves in line with the Federal Reserve’s short-term rate decisions, rose more than 1 basis point to 4.182% on Monday. Oil prices moved higher as the 60-day window for a U.S.-Iran peace deal expired on Monday, with Iran ruling out extending the deadline. Investors are awaiting the Federal Reserve meeting minutes due later this week for further insights into the central bank’s latest monetary policy decisions and future interest rate path. At its July 29 meeting, the Fed voted 9-3 to hold interest rates steady in the 3.50% to 3.75% range. The three dissenting committee members – Harker, Kashkari and Logan – called for a 25 basis point rate hike.

US investment-grade bond issuance has hit a monthly record for the third consecutive month, extending the fastest pace in the bond market’s history. Corporations’ massive spending on artificial intelligence infrastructure has driven rising corporate borrowing demand. According to institutional statistics, as of Monday, US investment-grade bond issuance in August reached $145.2 billion, exceeding the previous record of $136 billion set in August 2020. Earlier this year, January, June, and July also set their respective monthly issuance records, while three other months ranked among the second-highest in history. Data shows this month’s issuance was primarily driven by Alphabet (GOOG.O)’s $25 billion bond offering. This marks the 8th deal this year with an issuance size of $25 billion or more, all of which are from tech companies.

U.S. Treasury data shows that in June, the United Kingdom, Japan, and China all reduced their holdings of U.S. Treasury securities compared to May. Japan held $1.117 trillion in U.S. Treasuries, down $26.4 billion from May; the U.K. held $939.9 billion, a month-on-month decrease of $8.7 billion; and China held $633.4 billion, with a month-on-month drop of $26 billion.

According to people familiar with the matter, Anthropic’s current performance means its annual recurring revenue (ARR) is on track to exceed $65 billion, more than seven times the level recorded at the end of last year. As of the end of July, the company’s ARR has reached $65 billion, one insider said, adding that Anthropic shared the figure in regular updates to investors. The sharp revenue growth has further strengthened Anthropic’s confidence in advancing its initial public offering (IPO) plans. Both Anthropic and OpenAI have confidentially filed IPO-related documents, with Anthropic expected to list on Wall Street as early as this fall, possibly earlier than OpenAI.