Finance

Government bond yields across major economies eased slightly but remained near long-term highs due to ongoing concerns over national debt levels and persistent inflation. The U.S. 10-year Treasury yield fluctuated near 4.8%, while borrowing costs in Japan and Germany reached milestones not seen in decades, creating strong competition for equity markets.

Renewed military hostilities between the United States and Iran have disrupted energy supply expectations and kept global commodities volatile. West Texas Intermediate futures hovered above $91 a barrel, while Brent crude traded near $95, contributing heavily to heightened inflation anxieties among market participants.

Market pricing for a central bank interest rate hike during the upcoming September meeting has surged to over 60% following hawkish commentary from key officials. Investors are balancing strong corporate performance against the reality that the Federal Reserve may tighten monetary policy further to combat sticky, tariff-driven inflation.