- The disruption to oil supply and the hit to the world economy have been far less damaging than feared, leaving oil prices contained.
- US bond yields dropped from their highest levels since 2002 as oil retreated below $100 a barrel.
- Treasury Secretary Scott Bessent insisted the government's debt load can be tamed, addressing the sovereign-credit side of the yield move.
- Emerging-market assets rose for a second session on lower US yields, a weaker dollar and steady oil, with MSCI's EM currency index gaining as much as 0.2%.
- The Hungarian forint led EM currency gains after central bank officials said the nation could adopt the euro as early as 2031, while the Colombian peso fell with energy prices.
Quotes
“The disruption to oil supply, oil prices and the world economy has been surprisingly manageable so far”
“US bond yields fell from their highest levels since 2002 as oil prices retreated below $100 a barrel and Treasury Secretary Scott Bessent insisted the government’s debt load can be tamed.”
“Emerging-market assets extended gains on Tuesday as a combination of lower US bond yields, a weaker dollar and steady oil prices provided some relief to global markets.”