Finance

The yield on the benchmark 10-year U.S. Treasury note hit its highest level since July 2025 following a hotter-than-expected Producer Price Index report. Investors are increasingly pricing in a hawkish Federal Reserve stance, with 30-year bond yields breaching the 5% threshold for the first time since 2007 as inflation pressures mount across the supply chain.

Crude oil prices continue to fluctuate near $107 per barrel as conflict in the Middle East threatens prolonged disruptions to the Strait of Hormuz. Analysts highlight a critical supply deficit and warn that even with a potential political resolution, the physical restoration of global tanker routing could take several weeks to months.

Market attention is shifting to high-level talks between President Trump and Chinese President Xi Jinping, with the inclusion of Nvidia's CEO in the U.S. delegation signaling the strategic importance of semiconductor access. While the meeting has provided some optimism for trade relations, investors remain cautious about the potential impact of ongoing U.S. export restrictions on advanced technology.