Commerzbank on Overnight News

BY MT Newswires | TREASURY | 06:42 AM EDT

06:42 AM EDT, 05/28/2026 (MT Newswires) -- Commerzbank in its "European Sunrise" note of Thursday highlighted:

Markets: United States Treasury yields open higher in Asia, continue to increase with the 10-year back above 4.5%. Brent surges to US$98/barrel after U.S. strikes on Iran. Asian equity indexes and U.S. futures are down. The euro (EUR) drops below US$1.159.

Fed: Federal Reserve Governor Lisa Cook is prepared to raise rates if inflation doesn't ease as expected. Minneapolis Federal Reserve President Neel Kashkari says inflation fight takes priority and unanchored expectations could require stronger policy action. Federal Reserve Vice Chair Philip Jefferson warns of inflation from energy price increases.

U.S.: Treasury Secretary Bessent believes prices are "transitory;" expects oil to be lower than pre-conflict levels when it ends.

Iran war: U.S. carries out strikes against Iranian military site. President Donald Trump says "we're not satisfied with Iran deal," warning that if negotiations fail U.S. may "finish the job."

==EUROPE:

ECB: European Central Bank Governing Council member Philip Lane warns that inflation could remain elevated even after Iran conflict ends.

EU broadens import quotas and tariffs against China. Plans a strategy to reduce reliance on U.S. tech companies.

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In general the bond market is volatile, and fixed income securities carry interest rate risk. (As interest rates rise, bond prices usually fall, and vice versa. This effect is usually more pronounced for longer-term securities.) Fixed income securities also carry inflation risk and credit and default risks for both issuers and counterparties. Unlike individual bonds, most bond funds do not have a maturity date, so avoiding losses caused by price volatility by holding them until maturity is not possible.

Lower-quality debt securities generally offer higher yields, but also involve greater risk of default or price changes due to potential changes in the credit quality of the issuer. Any fixed income security sold or redeemed prior to maturity may be subject to loss.

Before investing, consider the funds' investment objectives, risks, charges, and expenses. Contact Fidelity for a prospectus or, if available, a summary prospectus containing this information. Read it carefully.

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