Daily Update — June 10 2025
Coal’s Competitive Advantage; US Treasury Prices Down; and AI Infrastructure Investments
Today is Tuesday, June 10, 2025, and here’s your curated selection of Essential Intelligence on global markets from S&P Global. Subscribe to be notified of each new Daily Update.
Energy Transition & Sustainability
Listen: Comeback kid: Rising gas prices expand near-term use of coal in US power markets
Coal use in US power generation has declined since the early 2000s as plants retire and renewables and natural gas gain market share. However, the trend may slow or pause in 2025, if only temporarily.
S&P Global Commodity Insights coal markets expert Wendy Schallom joined “EnergyCents” podcast hosts Hill Vaden and Sam Humphreys to discuss how two years of stockpile build and higher gas prices in 2025 have increased the near-term competitiveness of coal in US power markets.
Economy
Yippy Yields and Dollar Dilemmas
Equity markets have rebounded significantly after a challenging start to the second quarter, with the S&P 500 gaining 6% by the end of May. However, the bond market has faced pressures from the uncertainty and potential inflationary effect of tariffs, concerns about the US’ fiscal deficit and shifts in foreign demand for US Treasurys. This has resulted in the iBoxx $ Treasuries index declining 1% month over month in May, its first loss of the year.
Despite a decline across the yield curve following a soft labor market report, US Treasury yields for 2-year and 30-year notes increased by over 23 basis points and 27 bps, respectively, between the end of April and June 4. The 30-year Treasury yield briefly exceeded 5% due to weak demand in the 20-year US Treasury auction.
Private Markets
Venture capital seeks AI winners as private equity makes infrastructure play
Risk is influencing the flow of private capital into the AI sector as venture capital and private equity firms choose differing strategies. While venture capitalists seek opportunities to invest directly in AI technologies, private equity investors are focusing on the essential infrastructure that supports AI's growth. Notably, private equity-backed mergers and acquisitions in datacenters reached $18.15 billion globally in 2024, the highest level in five years, according to data from S&P Global Market Intelligence.
Investors are aware of the potential profits in the AI sector, but there are concerns about the risks associated with investing in rapidly evolving technologies.
In case you missed it
- Global food commodity prices fell in May, with significant drops in cereal, sugar and vegetable oil prices, according to the UN’s Food and Agriculture Organization.
- Chinese ethylene-makers using imported US ethane are more optimistic about trade flows of the feedstock between the two countries after President Donald Trump and President Xi Jinping agreed to further trade talks.
- Mongolia's first refinery project has faced delays and is expected to start operations in 2028, three years later than the previous deadline.
Upcoming events
- Economic Outlook and Customer Credit Risk: How Companies Can Navigate Trade Shifts in 2025 | June 12 (Webinar)
- Risk to Resilience: How Technology is Reinventing Urban Preparedness | June 12 (Webinar)
- Sustainable Finance in Private Markets | June 12 (Webinar)