Finance

Fixed-income markets experienced intense volatility as the 30-year Treasury yield surged to a 22-year high of 5.50% and the 10-year yield briefly touched 5.23%, its highest level since 2007. The dramatic selloff in duration was driven by persistent energy inflation, strong economic data, and hawkish signals from Federal Reserve officials regarding data-dependent rate adjustments. Yields pulled back slightly late in the week following headlines regarding international trade and security negotiations.

Energy prices pulled back significantly, with West Texas Intermediate crude falling over 2% to settle near $92 a barrel and Brent futures dropping below $98 a barrel. The commodity market cooldown followed reports that American and Iranian diplomats are negotiating a phased agreement to reopen the crucial Strait of Hormuz. The potential resolution offered significant relief to equity and bond investors who have been treating elevated fuel costs as a primary driver of broader market inflation.

The digital asset market weathered substantial volatility as roughly $400 million in leveraged positions were liquidated over a 24-hour period, with bullish long positions bearing the brunt of the forced selling. While spot prices for Bitcoin and Ethereum stabilized near $84,000 and $2,700 respectively, the broader sector faced headwinds from tight monetary policy and the legislative failure of a major cryptocurrency regulatory framework in the U.S. Senate. Additionally, crypto-exposed equities broadly declined following reports of a $350 million breach at a major digital asset platform.