Finance

Global bond yields continued their upward trajectory, with the benchmark U.S. 10-year Treasury yield jumping to 5.29%. The selloff in bonds remains pressured by elevated inflation expectations and higher energy costs driven by ongoing geopolitical tensions in the Middle East. Consequently, market participants have adjusted expectations for future Federal Reserve action, now anticipating additional rate hikes extending into next year.

The Federal Reserve's preferred inflation gauge, the Personal Consumption Expenditures (PCE) report, indicated that prices cooled more than expected for the month. Annual consumer price growth slowed to 3.4% in August, down from the previous month's rate. Following the reading, investors scaled back their expectations for an upcoming interest rate hike, pricing in roughly a 37% probability of monetary tightening.

Bitcoin traded near the $84,000 threshold at the end of September, registering a 6.5% monthly gain despite a historical seasonal tendency for market weakness. Analysts look toward October with optimism given its historically robust returns for digital assets. However, market experts caution that a sustained breakout past $85,000 remains contingent on stronger spot buying volume as exchange-traded fund inflows taper off.