Stocks weather bond storm as oil retreats slightly
SPY•Global stocks headed for their best weekly performance since early August as oil prices eased slightly, while bond yields remained near recent peaks. Japan’s 10-year yield touched 3.115%, its highest since 1996.
1. Stocks and oil
Global stocks were on course for their strongest weekly performance since early August, with AI enthusiasm and hopes for improved Middle East energy supplies outweighing surging bond yields. Oil retreated as traders weighed the possibility of a U.S.-Iran truce, but remained above $100 a barrel.
2. Bond yields climb
Japan’s 10-year bond yield touched 3.115%, a level last seen in 1996. The U.S. 10-year Treasury yield was around 5.17% after reaching about 5.22%, a 19-year high, while the 30-year yield was around 5.46%, its highest since 2004.
3. Dollar and yen
Inflation concerns supported expectations of further central-bank rate hikes and kept the dollar on track for a second consecutive weekly gain. The dollar fell 0.4% against the yen to 158.23 after Japan’s finance minister said President Donald Trump had voiced concern about the yen’s weakness.
