Global Economy Shudders on Oil Spike, Bond Selloff
A jump in crude prices pushed inflation fears higher and left Scott Bessent’s bond buyback unable to stop the sell-off.
- On Thursday, Brent crude hit US$108 as Middle East fighting intensified, pushing 10-year U.S. Treasury yields to 4.95%, the highest level since 2007, lifted by oil prices, inflation concerns, and President Trump's pledge of $5,000 checks adding more than $1 trillion to the federal deficit.
- The U.S.-Iran war and closing of the Strait of Hormuz caused an oil shock central banks struggled to overlook throughout the year; on Thursday, the U.S. and Iran ramped up tanker strikes while Houthi forces captured a Yemen port threatening maritime shipping through the Red Sea.
- Canadian gas prices jumped to $1.78 a litre on Thursday, up from $1.63 a month ago, while U.S. diesel hit US$6 for the first time; oil has climbed more than 40 per cent since early July and Government of Canada bond yields hit 3.95%, last seen in 2023.
- Bank of Canada Governor Tiff Macklem sounded hawkish last week, warning that upside inflation risks from high oil now outweigh trade war concerns, while markets bet on a quarter-point rate hike by year-end and Treasury Secretary Scott Bessent's recent bond-buying efforts failed to contain yields.
- A monthslong bond selloff threatens stock market and economic damage, with S&P Global Energy expecting oil to average US$80–US$100 through next year as investors demand higher yields due to large fiscal deficits in the United States, leaving Doug Porter of Bank of Montreal to warn Canada 'cannot escape this global tide.
12 Articles
12 Articles
Unrelenting Bond Selloff Pushes Rates Higher
“A monthslong selloff in government bonds is skidding into dangerous ground, pushing borrowing costs toward levels that some fear will finally damage the stock market and the economy,” the Wall Street Journal reports. “Yields on U.S. Treasurys, which rise when bond prices fall, surged anew on Thursday, lifted by a new jump in oil prices, […]
London.- The price of Brent oil skyrocketed this Thursday by 6.34% and closed at 107.63 dollars a barrel, its highest level since May, in the face of rising military tensions in the Middle East and the fear of the... Read more › The entry Price of Brent oil exceeds 107 dollars was first published in Remolacha - News Dominican Republic.
The price of Brent oil has exceeded 105 dollars during the day, reaching a daily increase of more than 5.5 per cent.
The new jump in oil prices is rekindling fears of inflation in international markets, sparking fresh sell-offs in government bonds. The barrel topped $107, while 10-year bond yields surged in the UK and US as investors discount prolonged inflationary pressures and tighter monetary policy. The price of a barrel […] The post Markets on alert: Oil above $107 and new bond sell-off appeared first on iEidiseis.
Coverage Details
Bias Distribution
- 67% of the sources are Center
Factuality
To view factuality data please Upgrade to Premium
