Global Markets Update: Bond Yields Rise as Iran Tensions Grip Oil

This global markets update shows bond yields rising after the US and Iran exchanged fire, jolting a four-week ceasefire and stoking inflation concerns.

Additionally, yields on the 10-year New Zealand government bond rose three basis points to 4.69%, while Australian 10-year yields climbed above 5% ahead of the Reserve Bank of Australia decision.

Consequently, in the US, 30-year Treasuries touched 5% for the first time since July, as traders priced in higher oil and a potential policy shift.

Moreover, Brent crude edged lower but stayed near $114 a barrel as Strait of Hormuz tensions fueled energy-price fears, a rally that has pushed the commodity up about 90% this year.

Moreover, the dollar strengthened against most G-10 peers, while gold rose to around $4,535 an ounce and Bitcoin traded near $80,200.

Additionally, there will be no cash trading in Treasuries during Asian hours because of a holiday in Japan.

Therefore, Darrell Cronk of Wells Fargo Investment Institute warned that aftershocks from the conflict may linger, with energy prices, industrial activity, and geopolitical risk premia unlikely to fade quickly.

Meanwhile, Palantir raised its revenue outlook and beat forecasts; Grab posted stronger Q1 profit; Amazon launched a new logistics services bundle; a General Catalyst-backed startup agreed to buy Global Business Travel Group for about $6.3 billion; Tyson Foods lifted its full-year profit outlook.

Additionally, John Williams, president of the New York Fed, said rates may need to move lower if inflation returns to the 2% target, while the Fed board remained divided on the next move.

Overall, markets face a complex mix of inflation risk and energy dynamics as oil remains volatile and geopolitical risk premia stay elevated.

Investors are watching next moves from policymakers and energy markets. As markets wait for more clarity, volatility may persist.