Finance

The 10-year Treasury note yield flirted with the critical 5% threshold before settling down near 4.97% on Friday. Strong economic indicators over the past several weeks, alongside a poorly received debt auction, have fueled expectations of tighter monetary policy. Investors are pricing in a roughly 66% probability of another Federal Reserve rate hike in the upcoming month, treating robust economic indicators with caution.

West Texas Intermediate crude dipped to around $93 per barrel, and Brent crude settled lower near $105.60 on hopes of diplomatic progress in the Middle East. The moderation in energy costs provided some relief to underlying inflation fears, allowing spot gold prices to advance nearly 0.8% to over $4,300 per ounce. Despite the daily gains, the broader commodity complex remains highly sensitive to geopolitical developments and corporate energy export constraints.

The digital asset market faced heightened short-term volatility as roughly $18 billion in Bitcoin and Ethereum options reached their expiration on September 25. Bitcoin fluctuated around the $84,000 mark as traders adjusted their derivatives exposure and unwound leveraged positions. While spot-market performance remains constructive, participants are keeping leverage limited following the legislative stall of the Clarity Act in Washington.