Finance

The aggressive global selloff in government bonds took a breather, allowing the benchmark 10-year Treasury yield to retreat slightly from its intraday peaks to finish at 5.18%. Investors moved back into fixed income assets following reports that American and Iranian diplomats are negotiating a phased agreement to secure transit through the Strait of Hormuz. Despite the late-week stabilization, long-term yields remain at elevated levels not seen in nearly two decades due to persistent domestic economic strength.

U.S. benchmark crude oil futures plummeted roughly 2.3% to settle at $92.41 per barrel, while international Brent crude fell below the $98 mark. The commodity's retreat provided a necessary relief valve for financial markets that have been heavily weighed down by energy-driven inflation fears. The decline was heavily influenced by unexpected progress in negotiations to de-escalate tensions and reopen key maritime shipping channels.

The final September reading of the University of Michigan's consumer sentiment index edged up to 48.1, rising marginally above the earlier preliminary estimate. Despite this slight tick upward, overall consumer optimism remains lower than in previous months as high gasoline prices continue to strain household budgets. The survey also highlighted creeping long-term inflation expectations, keeping pressure on central bankers who monitor consumer behavior for signs of a self-fulfilling inflationary spiral.