Bonds steal the show
TLT•A global bond selloff pushed the 10-year U.S. Treasury yield above 5.2%, a post-financial-crisis high, and Japan’s 10-year yield to a 30-year high. Brent crude reached $107 a barrel, while Meta shares surged more than 11% after its Muse AI assistant launched.
1. Bond yields surge
High fuel costs, strong U.S. and European PMI data and a weak U.S. Treasury auction helped trigger a global bond selloff on Wednesday and Thursday. The 10-year U.S. Treasury yield climbed above 5.2%, a post-financial-crisis high, while the 30-year yield topped 5.46%, a 22-year high. Japan’s 10-year yield reached a 30-year high.
2. Oil prices swing
Brent crude rose as high as $107 a barrel on Thursday after hopes for a diplomatic breakthrough between Washington and Tehran faded and Houthi strikes against Saudi Arabia continued. Prices later edged lower as reports suggested U.S. and Iranian negotiators were exploring a phased deal involving Iran reopening the Strait of Hormuz and Washington lifting its economic blockade. U.S. diesel prices set a record above $6.50 per gallon, and President Donald Trump floated a diesel export ban; Energy Secretary Chris Wright said the administration was not seeking an outright ban.
3. AI lifts Meta shares
Meta shares rose more than 11% on Monday as its Muse AI assistant overtook ChatGPT as the top free app on Apple’s App Store and Google Play Store in the United States and Canada. Chip stocks also rallied, and the Nasdaq posted two consecutive record closing highs. Investors’ enthusiasm contrasted with concerns that Muse could disrupt financial and online travel businesses.
