Finance

A widespread selloff in the bond market has driven benchmark yields higher as market participants digest recent actions from global central banks. The 2-year Treasury yield surged to its highest mark since mid-2024 following interest rate hikes by both the Federal Reserve and the Bank of Japan. Investors continue to brace for tight monetary conditions, with derivatives markets indicating a strong probability of another domestic rate hike before the end of the calendar year.

The cryptocurrency market observed substantial upward momentum as Bitcoin rallied above the $80,000 mark. This sharp upward movement was largely catalyzed by the forced liquidation of roughly $183 million in short positions, which accelerated buying velocity. Despite headwinds from a hawkish Federal Reserve and legislative setbacks in the U.S. Senate, institutional inflows into spot exchange-traded funds have continued to support digital asset demand.

Spot gold prices surged past $4,350 per troy ounce to hit their highest level in a week, putting the precious metal on course for a weekly gain. The advance was bolstered by a weakening U.S. dollar and a consecutive multi-session decline in crude oil prices, which alleviated short-term fears of runaway inflation. However, the upside for bullion remains somewhat capped as high interest rates increase the competitive appeal of yield-bearing assets.