Finance

The global bond market selloff paused on Friday, with the U.S. 10-year Treasury yield finishing at 5.18% after climbing to multi-year highs earlier in the week. Yields cooled down slightly following reports that U.S. and Iranian negotiators are in discussions regarding a potential deal to reopen the crucial Strait of Hormuz. Despite the modest late-week relief, borrowing costs remain structurally elevated due to a heavy government debt supply and lingering data-dependent rate hike fears.

Crude oil prices posted notable declines on Friday, easing the energy shock concerns that have been fueling broader market inflation fears. Brent crude futures slid below the $98 per barrel mark, while West Texas Intermediate neared $92 a barrel. The price pullback was primarily driven by prospective negotiations aimed at normalizing global transport through vital shipping channels.

The digital asset market held onto positive territory, with Bitcoin trading around $84,400 and Ethereum hovering near $2,700 to sustain weekly gains of nearly 10%. While prices cooled from the eight-month highs established mid-week, the asset class found support from a massive wave of short liquidations earlier in the week. However, underlying momentum faces headwinds as macroeconomic projections indicate a high probability of further Federal Reserve interest rate hikes before the end of the year.