Finance

Government bond yields spiked as investors reacted to persistent inflation risks stemming from the ongoing conflict in the Middle East. The 30-year Treasury yield hit its highest closing level since 2007, and the benchmark 10-year note jumped to approximately 4.6% as markets priced in a higher-for-longer interest rate environment.

International crude benchmarks climbed significantly after a summit between U.S. and Chinese leaders concluded without a breakthrough regarding the closure of the Strait of Hormuz. Brent crude surpassed $109 per barrel, intensifying concerns that a protracted energy shock will continue to pressure global supply chains and consumer prices.

U.S. retail sales rose 0.5% in April, meeting economist expectations and marking a third consecutive monthly increase. However, much of the gain was attributed to higher costs for gasoline and food, as real spending fell slightly when adjusted for the accelerating pace of inflation.