Finance

Bond yields hovered near significant long-term highs following the Federal Reserve's first benchmark interest rate increase in three years. The yield on the 10-year Treasury note hovered near the 5% threshold, while the policy-sensitive 2-year yield climbed to 4.741%, marking its highest settlement since July 2024. Market participants are increasingly bracing for the possibility of another rate hike as early as October.

Oil prices declined for a third consecutive session but managed to remain elevated around the $100 per barrel mark. Hopes for alternative Middle East supply routes, specifically the ongoing restoration of Saudi Arabia's East-West pipeline, helped to alleviate immediate supply disruption fears. Brent crude futures slipped to around $103.77 a barrel, while West Texas Intermediate settled near $100.88 a barrel.

Spot gold prices surged to a one-week high, approaching $4,352 per ounce and positioning the precious metal for its first weekly advance in a month. Bullion received a strong boost from falling crude oil prices and a cooling U.S. dollar, which helped soothe entrenched inflation worries. However, the Federal Reserve's broader hawkish stance continues to cap the asset's near-term upside.