Finance

Fixed-income markets experienced intense selling pressure, pushing government bond yields to levels not seen in nearly twenty years. The benchmark 10-year Treasury note yield touched the 5.0% threshold earlier in the week and closed at 4.995%, while the policy-sensitive 2-year yield climbed to 4.741%. This steep upward trajectory follows the Federal Reserve's decision to enact its first interest rate hike in three years alongside indications of fewer rate cuts ahead.

Global energy markets continue to grapple with supply anxieties and elevated prices, with West Texas Intermediate and Brent crude futures both trading just above the $100 per barrel mark. Recent military activity and structural disruptions in the Middle East, including infrastructure vulnerabilities in Saudi Arabia, have created an uncomfortable feedback loop for inflation expectations. Although energy prices eased slightly toward the end of the week, the underlying commodity strength continues to complicate central bank efforts to declare victory over inflation.

Digital assets managed to preserve significant monthly gains despite a challenging macroeconomic backdrop and political hurdles in Washington. Bitcoin and Ethereum maintained key technical baselines, with Bitcoin trading near $77,873 after briefly crossing the $80,000 threshold. The market's stabilization comes even as the crypto industry faces a legislative blow following the failure of the highly anticipated Clarity Act to pass through the Senate.