Bond yields jump, oil extends gains as US-Iran ceasefire expires

Bond yields surged to their highest levels in decades as a US-Iran truce expired, causing oil prices to rise for the third day in a row. The 30-year Treasury bond yield reached 5.321%, its highest in almost 20 years, with the 10-year bond up 0.4 basis points at 4.724%. Typically, such high yields have been followed by positive comments from the Trump administration, typically hinting at a resolution to the Iran conflict.

However, analysts noted no such reassurance, as the 60-day truce appeared to be ending without a clear path to resolution. Asian stock markets, including Taiwan, China, South Korea, and Japan, posted losses as a result of the truce's expiration. Brent crude futures gained 0.4% to reach $91.20 per barrel, with the focus on continued higher yields and a significant drop in US Treasuries.

The S&P 500 and Nasdaq Composite both experienced slight declines, with traders reducing expectations of an imminent Federal Reserve interest rate change. The US dollar index showed a modest gain, while gold prices slipped slightly. Cryptocurrencies also experienced a minor dip in value.