U.S. Stock Futures Steady as Oil Tops $100 Ahead of Inflation Data 
Treasury Buyback Fails to Cool Long-Term Yields 
Oil Prices Surge as Middle East Shipping Attacks Threaten Supply 
Asian Currencies Subdued as Yen Weakens Ahead of Fed, BOJ Decisions 
Asian Stocks Slide as Oil Surge Fuels Rate Hike Fears 
US Bans Canadian Alcohol, Motorcycles as Trade War Escalates 
Gold Prices Steady Ahead of U.S. Inflation Data and Fed Decision 
China Inflation Accelerates in August as CPI, PPI Rise 
Japan Producer Inflation Eases to 7.6% in August 
UK Food Inflation Forecast to Hit 6.4% by Mid-2027 
Asian Stocks Fall as Oil Tops $100, Yields Rise 
Norway Core Inflation Rises to 3% in August 
German Inflation Accelerates to 2.9% in August 
Fitch Eyes Japan Budget for Fiscal Discipline 
Gold Prices Steady as Hot PPI Boosts Fed Rate Hike Bets 
UK Economy Grows 0.4% in July, Beating Forecasts 
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Global bond markets came under heavy selling pressure on Friday, pushing the U.S. 10-year Treasury yield close to the critical 5% threshold as soaring oil prices and expectations for higher interest rates intensified inflation concerns.
The 10-year Treasury yield climbed to 4.97% during early Asian trading, its highest level since late 2023. A sustained move above 5% could make government bonds increasingly attractive compared with equities while raising borrowing costs for mortgages, consumer loans, companies and governments.
Bond yields are rising across major developed economies as investors respond to oil prices above $100 per barrel, persistent inflation and growing government borrowing. The European Central Bank raised interest rates by 25 basis points on Thursday, while stronger U.S. producer price data increased expectations that the Federal Reserve could tighten policy next week.
Traders now see a 72% probability of a Fed rate hike, up from 49% a week earlier, according to CME FedWatch. The U.S. two-year Treasury yield, which is particularly sensitive to monetary policy expectations, reached 4.596%, its highest since July 2024.
Pressure also spread through Asian and European bond markets. Australia’s three-year government bond yield jumped 18 basis points to a 15-year high of 5.047%, while Japan’s 10-year yield rose six basis points to 2.97%. The Bank of Japan is widely expected to increase rates next week.
Oil remains a major driver of the global bond selloff. Brent crude reached a four-month high of $109.97 per barrel and was on track for a weekly gain of roughly 13% as attacks on key Middle Eastern shipping routes raised fears of prolonged supply disruptions.
Meanwhile, the U.S. Treasury bought back $5.2 billion of bonds in its latest liquidity operation, below its $6 billion limit.
Markets are now focused on U.S. consumer inflation data. Analysts say a stronger-than-expected CPI reading could push the 10-year Treasury yield above 5%, while softer inflation and stable oil prices could provide bond markets with some relief.
