Overview
- Long-term U.S. Treasury yields climbed this week to roughly 5.17–5.22% for the 10-year and about 5.46–5.48% for the 30-year, pushing a broad bond sell‑off that tightened financial conditions.
- Reports that U.S. and Iranian negotiators discussed a phased reopening of the Strait of Hormuz sent oil down from intraday peaks but kept WTI around $92 and Brent near $98–$100, leaving supply risk in the price.
- Several Fed officials, including New York Fed President John Williams, signaled another rate increase could be appropriate this year which reinforced market bets on further tightening.
- Rising yields and oil have real effects for households and companies as mortgage rates rose above 7% and a seven‑year Treasury auction this week priced at about 5.085%, increasing borrowing costs across the economy.
- Equities finished mixed with narrow breadth as AI and big tech stocks provided episodic support while investors watch next week’s U.S. jobs and PCE inflation data plus the outcome of U.S.–Iran diplomacy and any Treasury liquidity actions.