Finance

Global bond markets experienced continued volatility as the yield on the 10-year U.S. Treasury climbed toward multi-decade highs, hovering near the 5% threshold. This upward pressure on yields follows recent Federal Reserve tightening and expectations of additional interest rate hikes extending into the next year. The persistent spike in borrowing costs is increasingly challenging equity valuations and feeding investor caution.

The latest Personal Consumption Expenditures index data came in lighter than expected, signaling a cooling trend in consumer price pressures. In tandem, the government's final reading for second-quarter gross domestic product held steady at an annualized growth rate of 2.2%. Despite these signs of economic resilience, analysts note that core metrics remain stickier than preferred, keeping the central bank's restrictive policy track intact.

The cryptocurrency market initiated the new quarter with Bitcoin trading near the $84,000 mark, moving within striking distance of turning positive for the year. Large-scale capital inflows from prominent institutional spot exchange-traded funds have underpinned the digital asset's recent performance. Even so, the broader digital asset space remains sensitive to macro headwinds like elevated bond yields and persistent global rate uncertainties.