Elected President Donald Trump has just rejected Iran’s proposal to reopen the Strait of Hormuz during Monday’s Asian trading session. The move immediately sent oil prices soaring and triggered a strong sell-off across global bond markets.
The continued blockade of the vital Hormuz shipping route poses a direct threat to the world’s energy supply. With oil prices holding above the $100 per barrel mark, the specter of inflation is back—breaking expectations for central banks to ease monetary policy.
U.S. Treasury yields on the 2-year maturity rose by 5 basis points to 4.90%, while the 10-year yield hit 5.20%—a record high in many years. The sell-off spread even to Japanese and Australian government bonds, driving the U.S. dollar higher and exerting downward pressure on traditional investment channels.
The crypto market is facing major liquidity challenges as high bond yields pull safe-haven capital back. Price $BTC may face short-term adjustment pressure due to risk-avoidance sentiment among institutional investors.
#Geopolitics #OilMarket #BondYields
The continued blockade of the vital Hormuz shipping route poses a direct threat to the world’s energy supply. With oil prices holding above the $100 per barrel mark, the specter of inflation is back—breaking expectations for central banks to ease monetary policy.
U.S. Treasury yields on the 2-year maturity rose by 5 basis points to 4.90%, while the 10-year yield hit 5.20%—a record high in many years. The sell-off spread even to Japanese and Australian government bonds, driving the U.S. dollar higher and exerting downward pressure on traditional investment channels.
The crypto market is facing major liquidity challenges as high bond yields pull safe-haven capital back. Price $BTC may face short-term adjustment pressure due to risk-avoidance sentiment among institutional investors.
#Geopolitics #OilMarket #BondYields