Stocks are sliding as rising bond yields and rising oil prices put pressure on markets. Gold and silver are slipping, too, while the dollar is modestly higher.
Interest rates continue to bubble up globally, putting pressure on markets from Tokyo to New York. Overnight, the Japanese 10-year yield topped 3% – the highest for its benchmark bond yield since 1996. In the US, the 10-year yield hit 4.79%, its highest since October 2023.
Bearish government budget news in Asia and worsening inflation data in Europe were the latest catalysts to drive yields up. With Bloomberg’s aggregate global bond yield index now at its highest since 2008, investors are wondering what US Treasury Secretary Scott Bessent might try next. His recent promise to buy more longer-term debt barely moved the needle.
Source: Bloomberg
Meanwhile, oil prices rose again on news that two tankers were attacked near the Strait of Hormuz. The crude oil carriers were owned by Saudi Arabian and South Korean companies, according to the security consulting firm Marisks. US WTI futures prices have been trading in a sideways range for a few weeks now, but a breakout above $92.50 would be technically significant.
Finally, the online retailer Shein launched its Initial Public Offering (IPO) in Hong Kong, and things didn’t go swimmingly. It sold 280 million shares at a US-dollar-equivalent price of $6.19. That valued Shein at around $26.3 billion, down substantially from its peak valuation of $100 billion in 2022. Rising tariffs and consumer-focused investigations have hindered the company since then. The stock tanked 10% after its debut, before recovering to finish down 4%.
