Finance

The 30-year U.S. Treasury yield surged to a 19-year high of 5.2% in May, reflecting investor anxiety over persistent inflation and geopolitical instability. While the 10-year yield fluctuated near 4.5%, the overall rise across the curve has begun to pressure stock valuations and impact bond portfolio performance.

Ongoing tensions between the U.S. and Iran have caused significant volatility in energy markets, with Brent crude prices recently stabilizing near $92 per barrel on hopes for a ceasefire. Optimism surrounding a potential 60-day truce extension has bolstered risk appetite, leading to gains in sectors such as travel and retail.

Under new Chair Kevin Warsh, the Federal Reserve has held the federal funds rate steady in the 3.5% to 3.75% range. However, internal dissension and a shift toward less public guidance suggest that future rate hikes remain a possibility if inflation does not return to the central bank's target.