- Oil prices rose above $91 a barrel as renewed Middle East violence increased uncertainty across financial markets.
- Global government bonds sold off and yields reached new highs as higher oil prices fueled inflation fears.
- Rising oil prices became a driver of shorter-duration Treasury yields by strengthening expectations for Federal Reserve rate hikes.
- Asian stocks traded mixed as investors monitored the escalation and its effects on energy prices and risk sentiment.
Quotes
“Bloomberg's Anthony Stephens says the price of oil has become one of the movers of shorter-duration Treasury yields.”
“Renewed fighting in Middle East weighs on financial markets”
“Oil prices surge higher and Asian stocks are mixed”