Finance

The bond market faced significant pressure as Treasury yields surged to heights not seen in nearly two decades. The 10-year Treasury yield climbed as high as 5.22%, marking its highest level since 2007, while the 30-year yield approached 5.5%. These elevations are fueled by stronger-than-expected economic data, such as a slight rise in consumer sentiment, which has intensified concerns over inflation and potential rate increases.

Oil prices recorded a notable cooldown as West Texas Intermediate dropped over 2.3% to settle at $92.41 per barrel and Brent crude dipped below $98. The decline was heavily influenced by ongoing negotiations in New York between U.S. and Iranian diplomats aimed at reopening the strategic Strait of Hormuz. This potential resolution countered earlier upward momentum caused by regional security risks and infrastructure attacks.

The cryptocurrency market showed moderate stability, with Bitcoin trading slightly above $84,100 after pulling back from an 8-month peak of over $87,200 earlier in the week. Despite limited spot price movements, the derivatives market faced considerable volatility, experiencing roughly $400 million in leveraged position liquidations over a 24-hour period. Institutional interest remained visible, highlighted by nearly $191 million in net inflows into spot Bitcoin exchange-traded funds.