Fed survey indicates rising household debt payment burden

1002 ET - A Fed survey on consumer finances finds that borrowers may be falling behind on loans or spending a larger share of their income on debt payments. The median debt payment-to-income ratio was 15.4 percent, up 2.0 percentage points from 2022, the survey says. The Fed suggests this may relate to the concurrent increase in interest rates for mortgages and consumer loans. Families with particularly high debt payment obligations relative to their incomes increased from 6.5 to 8.6 percent, a level last seen in the 2013 survey. In addition, between the 2022 and 2025 surveys, the share of families that reported being behind on loan payments sharply increased from about 12 percent to nearly 20 percent.(jessica.coacci@wsj.com) 0957 ET - The Swedish krona's scope to extend recent gains against the euro looks limited in the near term, Danske Bank's Jens Peter Sorensen says in a note. While the krona could benefit if the euro weakens further on French fiscal concerns, it's unlikely to see major appreciation, he says. The krona remains mostly dominated by external factors and until it strengthens on its own merits, Danske recommends buying the euro on any dips versus the krona, he says. The euro rises 0.1% to 11.1881 krona after earlier reaching a four-week low of 11.1625, according to LSEG. (renae.dyer@wsj.com) 0946 ET - It will take a big upside surprise to Canadian inflation data for September to bring the possibility of an interest rate rise later this month back into play after large back-to-back drops in employment and a tick up in the unemployment rate, Capital Economics' Thomas Ryan reckons. The 68,300 fall in employment in September was worse than the consensus forecast for a small rise and Capital's own forecast for no change. The numbers aren't as bad as the headline suggests. The economist notes a reversal of an unusually strong summer hiring season for young adults, plus weakness was concentrated in the public sector. Ryan continues to expect the Bank of Canada will wait until next year to begin to normalize the policy rate. (robb.stewart@wsj.com; @RobbMStewart) 0934 ET - Yields on U.K. government bonds, or gilts, fall faster than their eurozone peers as oil prices decline after President Trump said talks with Iran were going well. "Whilst markets are not holding their breath for a quick resolution to the conflict, it's encouraging that neither side is willing to abandon the negotiating table," XM's Raffi Boyadjian says in a note. News about the U.S.-Iran talks have caused market sentiment to improve. Ten-year gilt yields fall 6.6 basis points to last trade at 5.423%, Tradeweb data show. Ten-year Bund yields fall 4.2 basis points to 3.464%. (miriam.mukuru@wsj.com) 0922 ET - Canada's job market stumbled again in September with a surprise drop in employment for a second month running. The economy shed 68,000 jobs, where the consensus call of economists was for a thin 9,000 rise in employment. That pushed the unemployment rate up 0.1 per