- The 10-year Treasury yield reached 5.2297% intraday, the highest since 2007, then stabilized as crude dropped, with traders pricing additional Fed rate hikes.
- Oil prices fell about 3% on mounting hopes for a US-Iran truce, even as Houthi attacks on Saudi Arabia raised supply-disruption risk.
- Rate volatility spiked: the ICE BofA MOVE Index rose roughly 30% this week, its largest increase since April 2025.
- US equities closed the week higher, with the Dow setting a record, as investors looked past rising yields, volatile oil and Middle East uncertainty.
- Equity strength was supported by continued enthusiasm for the AI trade.
- Geopolitical violence from the US-Israeli war on Iran and Russia's assault on Ukraine has choked international trade routes for crude and refined products, putting a potential US diesel export ban in focus for Europe.
Quotes
“10-year Treasury yield earlier reaches 5.2297%, highest level since 2007”
“Oil prices fell about 3% on mounting hopes for a truce between the US and Iran”
“Stocks, meanwhile, were buoyed by continued enthusiasm for the AI trade.”
“Wall Street wrapped up an eventful week with gains, as investors looked past days of rising yields, volatile oil prices and an uncertain outlook on the Middle East conflict.”
“Geopolitical violence — cascading from the U.S.-Israeli war on Iran and Russia's assault on Ukraine — has choked international trade routes, led by crude oil and refined products.”