Finance

U.S. government bond yields surged on Tuesday as a global sell-off pushed borrowing costs to levels not seen in over a year and a half. The 10-year Treasury yield rose near 4.8%, while the 2-year Treasury yield climbed past 4.37%. These climbing yields reflect mounting expectations that the Federal Reserve will implement an interest rate hike at its upcoming September meeting to counteract stubborn inflationary pressures.

Global energy benchmarks advanced notably today, with Brent crude trading above $92 per barrel. The upward price movement follows targeted military responses on Iran's Larak Island and subsequent retaliatory strikes against U.S. bases. Additionally, reports of attacks on supertankers have intensified fears of deep supply disruptions through the critical Strait of Hormuz shipping lane.

Digital assets and precious metals retreated on Tuesday, reversing temporary gains from earlier in the week. Bitcoin fell toward the $77,900 threshold, while gold slid over 1.6% to trade around $4,409. Because these assets do not yield interest, their valuations are facing headwinds from a sudden shift in CME FedWatch metrics, which now show a 66% probability of a central bank rate hike this month.