Global bond yields rose as oil moved above $105 a barrel, with the 10-year US Treasury yield touching 5.12% and the 30-year reaching 5.44%. Treasury Secretary Scott Bessent said Washington and Beijing had agreed to an initial two-month extension of their trade truce.
Government bond yields rose as markets remained on edge over inflation and the Iran war, with oil prices moving back above $105 a barrel. The 10-year US Treasury yield touched 5.12%, a post-financial-crisis high, while the 30-year yield reached 5.44%, its highest since 2004. Japan's 10-year yield also rose to its highest since August 1996.
World shares, European stocks and Wall Street futures moved lower. Norway raised interest rates, while Sweden signalled it was likely to follow before year-end. Traders saw a nearly 70% chance of another US Federal Reserve rate increase in October, up from 50% a week earlier.
Ahead of talks between US President Donald Trump and Chinese President Xi Jinping, Treasury Secretary Scott Bessent said Washington and Beijing had reached a deal for an initial two-month extension of their 11-month trade truce. The dollar hovered at a two-month high against a basket of major currencies.
