Bond yield rise keeps European markets edgy

Session recap:

Key market data:

• The 10-year Treasury yield rose 0.6 basis points to 4.801%.
• The Japanese yen was the best performer, while the New Zealand dollar lagged.
• Gold slipped 0.1% to $4,323.
• WTI crude oil declined 0.8% to $89.44.
• European stock indices were lower; S&P 500 futures fell 0.1%.
• Bitcoin dropped 0.9% to $76,705.

The session was calmer and less active, with broader markets remaining on edge amid ongoing pressure on global bonds.

Bond yields are rising across the board, creating a tense atmosphere as traders and investors weigh the potential consequences if the trend persists.

Earlier, the 10-year Treasury yield reached 4.81%, its highest since October 2023. German and French 10-year yields also rose to 3.37% and 4.24%, their highest since 2011 and 2008 respectively. Meanwhile, the UK 10-year yield climbed to 5.26%, a level not seen since 2008, and Japan's 10-year yield hit 3.02%, the highest since 1996.

USD/JPY touched a high of 160.40 in Asian trading but slipped to 159.45 during the transition to European hours. The dollar is generally stronger but fell against the yen, with USD/JPY down 0.3% at 159.70.

Elsewhere, EUR/USD fell 0.2% to 1.1573, while NZD/USD dropped 1.2% to 0.5820 after the Reserve Bank of New Zealand raised rates but signaled a more gradual tightening trajectory going forward.

Gold is oscillating around the $4,300 level as sellers attempt to extend yesterday's decline. WTI crude, after reaching above $92 in Asian trade, is now down 0.8% at $89.44. However, the commodity is still up nearly 7% for the week, so the drop is minor.

European equities are under pressure from rising yields, while US futures appear uncertain after three straight daily losses since last Friday. S&P 500 futures are 0.1% lower, and Nasdaq futures are down 0.2%.