Finance

The yield on the 10-year US Treasury note jumped to approximately 4.57%, its highest level in nearly a year, as investors demand higher returns to compensate for accelerating inflation. This surge was exacerbated by a significant rise in real yields, with the 10-year inflation-protected security climbing to 2.05%, reflecting market expectations of a more restrictive Federal Reserve policy.

Oil prices continued their upward trajectory, with Brent crude rising toward $108 per barrel following the conclusion of US-China talks that failed to secure a commitment for reopening the Strait of Hormuz. The ongoing maritime closure since February has effectively blocked critical global crude deliveries, fueling broader energy crunch fears across the global economy.

The University of Michigan's consumer sentiment index dropped to a provisional 48.2 in May, the lowest reading on record, as soaring gasoline prices and tariffs strain household finances. Paradoxically, retail sales rose for a third consecutive month in April, suggesting that a strong labor market is supporting nominal spending even as real disposable income growth stalls.