
Global bonds began to stabilize in Asia after a sharp two-day selloff pushed yields to multi-decade highs. The US 10-year Treasury yield eased to around 5.19%, while the two-year yield fell to about 4.90%. Oil also pulled back, with Brent falling 0.8% to around $105.70 a barrel after gaining more than 7% over the previous two sessions. Reports that US and Iranian negotiators are discussing a phased agreement, potentially involving the reopening of the Strait of Hormuz, helped ease some supply concerns across the Persian Gulf. Improving sentiment supported equities, with MSCI’s Asia Pacific index rising around 0.3%, led by Japan. US and European equity futures also pointed higher as investors monitored developments around oil prices and bond yields. Markets remained focused on inflation and monetary policy, with elevated energy prices continuing to support expectations for further Fed tightening. Interest-rate swaps were pricing around three additional quarter-point hikes over the next year, while global bond yields remained elevated. The yen strengthened around 0.3% to 158.40 per dollar after Japan’s Finance Minister said President Trump had expressed concern about yen weakness. The two countries are expected to continue coordinating on foreign-exchange issues. Meanwhile, US and Iranian negotiators were reportedly exploring a phased agreement that could see Tehran reopen the Strait of Hormuz. China’s President Xi Jinping also called for greater cooperation with the US during his meeting with President Trump in Washington. FISG Daily Market Wrap provides a concise view of the forces moving global markets, helping investors stay informed and better prepared for what comes next.

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