On Wednesday, U.S. Treasury yields increased, with the 10-year note yield rising to 4.675% and the 2-year note yield reaching 4.317%. This movement in yields coincided with a surge in oil prices, particularly Brent crude, which surpassed $97 per barrel due to reports of tanker attacks near Saudi Arabia and U.S. threats against Iran.
The rise in oil prices is significant as it can lead to inflationary pressures, potentially influencing the Federal Reserve's interest rate decisions.
Additionally, the yield on the U.K. 10-year government bond also rose, reflecting broader concerns in the market, particularly after new Prime Minister Andy Burnham announced a 20% cut in property taxes for hospitality venues, which may create investor unease. Investors are also awaiting the release of weekly jobless claims data and the S&P Global Flash U.S.
PMI report, both of which are critical indicators of economic health and could further affect market sentiment