Finance

Energy and fixed-income markets reacted positively to ongoing discussions between Washington and Tehran regarding the potential reopening of the Strait of Hormuz to commercial tankers. Hopes of resolving the shipping impasse led crude prices to fall over two percent, which directly helped moderate treasury yields.

A global bond selloff took a breather as the benchmark U.S. 10-year Treasury yield slipped slightly lower after flirting with 5.22%. Despite the late-week retreat, long-term borrowing costs finished the week near their highest closing levels in nearly two decades as persistent macroeconomic pressures remain.

The latest final readings from the University of Michigan showed that domestic consumer sentiment fell to a four-month low. High near-term inflation projections continue to weigh heavily on consumer outlooks, prompting fears of a prolonged negative impact on broader economic conditions.