On Friday, a wave of bond selling set off globally. As U.S. inflation data soared across the board, a number of key indicators hit multi-year highs, traders have now basically ruled out the possibility of the Federal Reserve to cut interest rates this year, while the year’s bets on interest rate hikes have warmed up.
Boosted by the Fed’s interest rate outlook tightening, the dollar index rose for four consecutive days, breaking through the key psychological barrier of 99, and ultimately closed up 0.42% at 99.28, refreshing the highs since the beginning of April; benchmark 10-year U.S. bond yields soared nearly 14 basis points to 4.596%, the highest level since February 2025, and hit the largest one-day increase in more than a year; the 2-year U.S. bond yields particularly sensitive to interest rate policy rose nearly 14 basis points to 4.596%, the highest level since February 2025, and hit the largest one-day increase in more than a year; the interest rate policy is particularly sensitive to the 2 year U.S. bond yields rose nearly 9 basis points to 4.075%.
The dollar higher directly impact on precious metals. Spot gold plunged more than $110 in a single day, losing the $4,540 mark, and finally closed down 2.41% at $4,538.45 per ounce; spot silver closed down 9.07% at $75.90 per ounce.
With the ongoing blockade of the Strait of Hormuz triggering market concerns about global inventory drawdowns, international oil prices rose significantly. wti crude ended up 3.12% at $105.22/barrel; brent crude ended up 2.36% at $109.15/barrel.