Finance

The yield on the 10-year U.S. Treasury note advanced to 5.31%, flirting with its highest levels in decades after breaching intraday highs not seen since 2002. Selling pressure in the bond market intensified following an unexpected jump in the prices paid subcomponent of the ISM services index. This persistent upward move reflects underlying anxiety that inflation pressures remain sticky despite recent softer economic indicators.

September employment data revealed the U.S. economy added just 29,000 jobs, falling vastly short of consensus forecasts and pushing the unemployment rate up to 4.2%. The pronounced cooling in labor market expansion significantly shifted monetary policy expectations, causing swap markets to drastically slash the probability of an interest rate hike at the upcoming Federal Reserve meeting.

Global energy benchmarks relented slightly, with Brent crude dipping to settle just above $100 a barrel and West Texas Intermediate dropping nearly 2%. The brief reprieve in oil markets followed European commitments to release diesel stockpiles alongside an increase in Middle Eastern exports. However, underlying volatility remains high as market participants closely monitor the ongoing war with Iran and potential risks to the global crude supply chain.