Finance

The global fixed-income rout took a breather as the benchmark U.S. 10-year Treasury yield receded slightly to end the week at 5.18%. Earlier in the week, strong manufacturing data and persistent inflation concerns had propelled the 10-year yield near 5.23%, marking its highest level since 2007. Investors remain cautious as upcoming economic data points could solidify expectations for an October interest rate hike.

U.S. benchmark crude oil futures fell over 2% to settle at $92.41 a barrel, providing a much-needed reprieve for global financial markets. The decline followed reports that diplomatic negotiations in New York could lead to an agreement to reopen the Strait of Hormuz, a critical global transit waterway. The temporary retreat in energy costs also helped alleviate some of the immediate pressure building on sovereign debt yields.

The University of Michigan's monthly survey revealed that consumer sentiment deteriorated in September, registering a headline index of 48.1 compared to 51.7 in August. The drop reflects growing public concern over inflation and elevated fuel costs, with national average gasoline prices remaining above $4 a gallon for over two months. Additionally, long-term inflation expectations among consumers ticked slightly upward.