The Intelligence Layer Beyond Your Own Book

The global bond sell-off eased and oil prices retreated as talks progressed over a phased reopening of the Strait of Hormuz, improving risk sentiment. Markets are also watching President Xi’s US visit for progress on trade, while USD/JPY fell below 158 amid continued concerns over yen weakness.

US Treasuries suffered their sharpest sell-off since “Liberation Day” as strong economic data and rising oil prices pushed five-year yields above 5% and raised expectations of an October Fed rate hike. Equities weakened despite an extension of the US-China trade truce, with attention now turning to US employment data and comments from Fed officials.

Improved US-Iran talks lifted risk sentiment, sending oil lower and Treasury futures higher, while Asian technology stocks continued to gain. Attention remains on geopolitical developments and the upcoming Trump-Xi summit, with trade policy and critical mineral exports expected to dominate discussions.