Key facts
- U.S. Treasury yields are pressured by rising oil prices and a weakening yen.
- The 30-year U.S. Treasury yield is nearing a 20-year high.
- Brent crude prices rose for a sixth consecutive session.
- Geopolitical tensions, including Houthi attacks in the Red Sea and North Korean missile launches, are adding to market anxiety.
- The Japanese yen weakened past 159 per dollar.
- U.S. CPI data is expected to show a 0.1% increase in July, with annual inflation forecast to slow to 3.4%.
U.S. Treasury yields are facing renewed pressure from tightening energy markets and a weakening yen, pushing the 30-year bond yield close to a two-decade high ahead of crucial inflation data. Brent crude rose for a sixth straight session, highlighting mounting pressure on central banks to contain energy-driven inflation.
Geopolitical tensions added to market anxiety, with Houthi attacks in the Red Sea and North Korea's ballistic missile launch contributing to uncertainty. Markets are focused on U.S. consumer price index data for signals on the timing of a potential Federal Reserve rate hike, with money markets showing an even chance of a hike at the Fed's next meeting.
The Japanese yen slid to 159.45 per dollar in Asian trade, the weakest level since coordinated intervention bolstered the currency last week. Futures pointed to a slightly lower open in European markets, while U.S. stock futures indicated a slightly higher open.