Oil and yields climb as European stocks steady ahead of ECB

Headlines:

Markets:

• Brent crude climbed 1.2% to $102.41
• WTI crude rose 1.5% to $97.46
• US 10-year yields added 4 bps to 4.877%
• Gold slipped 0.5% to $4,377
• USD led while AUD and JPY lagged
• European equity benchmarks were marginally higher, while S&P 500 futures were down 0.1%

The week has offered little variation from one session to the next. Crude and government bond yields keep climbing together, and the effects are being felt across most of the wider market.

That backdrop is a fresh reminder of inflation concerns, with the European Central Bank's policy decision due later and the US CPI report scheduled for tomorrow.

Brent crude is trading more than 1% higher at $102.41, while WTI has gained over 1% to $97.46. That in turn is pushing Treasury yields further up, with the 10-year rate up 4 bps to 4.877% and the 30-year rate higher by nearly 4 bps to 5.322%. The "Bessent put" has so far not delivered, as yesterday's Treasury buyback announcement essentially amounted to nothing.

Broader markets remain on edge because of higher oil and firmer yields. The dollar is holding steady across the board, with USD/JPY recovering to above 154.00 despite Bessent's threats on that front as well.

Equities, meanwhile, remain cautious. European indices are posting modest gains ahead of the ECB, though the moves look more like a pause after this week's selling. US futures are lower, with Wall Street still pressured from the rise in yields ahead of tomorrow's US CPI report.

Elsewhere, gold has turned lower, falling 0.5% to $4,377 after trading above $4,400 earlier in the session. Bitcoin is also down 0.6% on the day to $77,857 as risk sentiment remains subdued for most of the week.