Oil prices rose sharply on Wednesday despite a record release of global crude reserves, stoking inflation fears and lifting two-year Treasury yields to the highest since September. In my column today I sketch out why structurally higher oil prices are bad news for U.S. corporate earnings, as businesses and consumers face far higher direct and indirect energy costs than they were budgeting for.
Oil prices rose sharply on Wednesday despite a record release of global crude reserves, stoking inflation fears and lifting two-year Treasury yields to the highest since September. In my column today I sketch out why structurally higher oil prices are bad news for U.S. corporate earnings, as businesses and consumers face far higher direct and indirect energy costs than they were budgeting for.
* US inflation rises as expected in February, impacting market sentiment. * Oil prices up as Middle East conflict raises concerns over global energy trade and inflation. * Bond yield rise fuels overheating fears in private credit and AI investments. By Lawrence Delevingne and Amanda Cooper.
U.S. consumer prices rose 2.4% from a year ago in February, data showed, matching economists' expectations. The Consumer Price Index rose 0.3% last month from January, also matching the expectations of economists polled by Reuters, after rising 0.2% the previous month. MARKET REACTION:??. STOCKS: U.S. stocks were lower. BONDS: U.S. Treasury yields rose after the inflation report.
* Oil prices climb over 5% * US, Israel trade airstrikes with Iran. * US dollar, 10-year Treasury yields rise. * US Consumer Price Index data due later in the day. By Ishaan Arora. Gold was largely steady on Wednesday, as higher oil prices fueled worries of a spike in inflation and tempered hopes of rate cuts, while safe-haven demand amid the ongoing U.S.-Israeli war on Iran limited losses.
* Oil prices climb over 5% * US, Israel trade airstrikes with Iran. * US dollar, 10-year Treasury yields rise. * US Consumer Price Index data due later in the day. By Ishaan Arora. Gold steadied on Wednesday, as higher oil prices reignited inflation worries and tempered hopes of rate cuts, while safe-haven demand amid the ongoing U.S.-Israeli war on Iran limited losses.
Global shares fell and benchmark Treasury yields spiked on Wednesday after data showed U.S. inflation picked up as expected while oil prices resumed their climb as the U.S.-Israeli war on Iran dragged on. Data from the Labor Department showed the consumer price index rose 0.3% in February, in line with forecasts and above January's 0.2% increase.
* Oil prices drop 7% after Trump's comments on Iran. * Upcoming Treasury auctions to test demand amid easing inflation fears. * February inflation data expected to show modest price increases. By Karen Brettell.
* Oil prices surge to over $119 a barrel amid supply cuts. * Fed funds futures show 77% odds of rate cut in July. * Treasury to auction $119 billion in coupon-bearing debt this week. By Karen Brettell.
* Oil prices surge to over $119 a barrel amid supply cuts. * Fed funds futures show 67% odds of rate cut in July. * Treasury to auction $119 billion in coupon-bearing debt this week. By Karen Brettell. U.S. Treasury yields pulled back from Monday's highs after oil prices trimmed their earlier surge.
* Dollar rises to over three-month high. * US 10-year Treasury yields at one-month high. * Crude oil prices rise about 15% * Iran names Khamenei's son Mojtaba as new supreme leader. By Noel John.
* Dollar rises to over three-month high. * US 10-year Treasury yields hit one-month high. * Crude oil prices rise about 20% * Iran names Khamenei's hardline son Mojtaba as new supreme leader. By Noel John.
* Dollar rises to over three-month high. * US 10-year Treasury yields hit one-month high. * Crude oil prices rise more than 20% * Iran names Khamenei's hardline son Mojtaba as new supreme leader. By Noel John.
* Oil bounds above $100 a barrel, Brent climbs 23% * Nikkei down over 7%; Wall Street, EU stock futures skid. * Treasury yields up, Fed fund futures ease on inflation risk. * Dollar in demand as source of liquidity, euro drops. By Wayne Cole.
U.S. Treasury yields rose on Monday, as oil prices burst past $100 per barrel amid a rapidly escalating war in Iran, spurring fears of rising inflation and elevated interest rates that outweigh the safe-haven allure of bonds. Oil surged about 20% in early trade to their highest since July 2022, as the U.S.-Israeli war with Iran prompted some major Middle Eastern oil producers to cut supplies.
* Oil bounds above $100 a barrel, Brent climbs 17% * Nikkei down over 5%, Wall St & EU stocks futures skid. * Treasury yields up, Fed fund futures ease on inflation risk. * Dollar in demand as source of liquidity, euro drops. By Wayne Cole.
Wall Street stocks gained, oil prices relented and U.S. Treasury yields dipped on Monday after President Donald Trump reportedly said he thinks the war against Iran "is very complete" and that the U.S. is "very far ahead" of his initial four- to five-week estimated time frame.
* Weak jobs report shows nonfarm payrolls decreased by 92,000. * Fed rate cut expectations for June meeting grow. * 10-year and 2-year yields on pace for biggest weekly rise since April. By Chuck Mikolajczak.
* Equities fall in US and Europe as Iran war rages. * US jobs report shows loss vs expected gains. * Qatar energy minister warns oil could surge to $150. * Oil prices jump sharply, Treasury yields are mixed. By Sin?ad Carew and Harry Robertson.
US nonfarm payrolls unexpectedly dropped last month, amplifying concerns about the health of the economy heading into?the US-Israel conflict with Iran. Nonfarm payrolls dropped by 92,000 jobs in February. MARKET REACTION:??. STOCKS: U.S. stocks fell at the open. BONDS: U.S. Treasury yields fell immediately after the payrolls report but then bounced back.
* Two-year Treasury yields set for biggest jump since April. * Two-year UK yields set for biggest weekly rise since 2024. * German 2-year yields see biggest weekly rise since 2023. By Dhara Ranasinghe.
* Weak jobs report shows nonfarm payrolls decreased by 92,000. * Yields fall as Fed rate cut expectations grow. By Chuck Mikolajczak. U.S. Treasury yields were lower on Friday, dropping sharply after a government payrolls report fell well short of expectations and boosted views that the Federal Reserve may need to cut interest rates at a quicker pace.
A steep selloff in U.S. Treasuries continued for a fourth day on Thursday, as investors fretted that surging energy prices from the war in the Middle East could stoke inflation and derail the Federal Reserve's rate outlook.
* KOSPI leads Asian market surge with 11.2% gain. * U.S. Senate backs Trump's military campaign against Iran. * China sets 2026 growth target at 4.5%-5% By Rocky Swift. Asian shares rallied on Thursday and U.S. Treasuries declined, pointing to a tentative recovery in risk appetite that has been hammered by the escalating war in the Middle East.
Asian shares rallied on Thursday and U.S. Treasuries declined, pointing to a tentative recovery in risk appetite that has been hammered by the escalating war in the Middle East. South Korea's KOSPI gauge recovered its steep losses in the prior session following a rebound on Wall Street. Chinese shares climbed as party elites in Beijing unveiled their wide-ranging economic and development targets.
* KOSPI leads Asian market surge with 10% gain. * U.S. Senate backs Trump's military campaign against Iran. * China sets 2026 growth target at 4.5%-5% By Rocky Swift. Asian shares rallied on Thursday with a decline in U.S. Treasuries pointing to a tentative recovery in risk appetite that has been hammered by the escalating war in the Middle East.
* ISM nonmanufacturing index hits highest since July 2022. * ADP employment tops expectations. * Yields higher although crude prices ease. By Chuck Mikolajczak. U.S. Treasury yields advanced for a third straight session on Wednesday as investors gauged the likelihood of higher inflation and the path of monetary policy as the war in Iran puts upward pressure on oil prices.
* Iran conflict sends oil prices higher. * Fed rate cut expectations drop as inflation concerns rise. By Chuck Mikolajczak. U.S. Treasury yields rose sharply for a second straight session on Tuesday, as the Iran war entered a fourth day to continue pushing oil prices higher and fuel inflation worries.
U.S. Treasuries just clocked their best month in a year. The joint U.S.-Israeli attack on Iran on Saturday, in which Supreme Leader Ayatollah Ali Khamenei was killed, marked a dramatic escalation in regional tensions. Both of these moves accelerated sharply in early trading on Monday.
* Oil prices settle up sharply on supply concerns due to US-Iran war. * Gold prices jump, Treasury yields rise. * Wall Street indexes pare losses, Europe underperforms. * Dollar gains against major currencies. By Sin?ad Carew and Alun John.
* Oil prices up sharply on supply concerns due to US-Iran war. * Gold prices jump, Treasury yields rise. * Wall Street indexes pare losses, Europe underperforms. * Dollar gains against major currencies. By Sin?ad Carew and Alun John.
By Jamie McGeever. U.S. Treasuries just clocked their best month in a year. The joint U.S.-Israeli attack on Iran on Saturday, in which Supreme Leader Ayatollah Ali Khamenei was killed, marked a dramatic escalation in regional tensions. Both of these moves accelerated sharply in early trading on Monday.
* Brent up sharply on supply concerns, off early peak. * Trump says strikes on Iran could last four weeks. * S&P 500 futures slide, Europe, Asia shares down 1-2% * Dollar jumps on euro, Treasury yields rise from near 11-month low. * Dollar gains on yen, Swiss franc, SNB threatens intervention. By Alun John and Wayne Cole.
* Brent up sharply on supply concerns, off early peak. * Trump says strikes on Iran could last four weeks. * Dollar jumps on euro, Treasury yields rise from near 11mth low. * S&P 500 futures slide, Europe's STOXX 600 down nearly 2% By Alun John and Wayne Cole.
* Brent up on sharply on supply concerns, off early peak. * Trump says strikes on Iran could last four weeks. * Dollar edges up on euro, Treasury yields steady near 11mth low. * S&P 500 and EU stock futures slide, Nikkei dives. By Wayne Cole.
* Brent briefly jumps above $80 a barrel on supply worries. * Dollar up broadly on euro, Treasury yields at 3-month lows. * S&P 500 and EU stock futures slide, Nikkei dives. By Wayne Cole. Oil prices surged on Monday and shares slid as military conflict in the Middle East looked set to last weeks, sending investors flocking to the relative safety of the dollar, gold and bonds.
Oil and gas prices surged while the dollar and safe-haven gold rallied on Monday as the U.S.-Israeli air war against Iran widened and looked set to last for weeks, prompting worries that it could upend a global economic recovery and perhaps reignite inflation. In response, global equity indexes underperformed U.S. stocks and Treasury yields rose on inflation fears.
* US 10-year yields hit lowest since November. * Belly of the curve outperforms, with multi-month lows in yields. * US 2/10 yield curve flattens again. * US PPI hotter than expected, but impact is brief. By Gertrude Chavez-Dreyfuss.
* Gold set for a monthly gain of over 6% * Gold set for seventh straight month of gains. * Silver, platinum, palladium also on track for a monthly rise. By Ishaan Arora. Gold was broadly steady on Friday as a drop in U.S. Treasury yields eased the opportunity cost of holding bullion, while muted safe-haven demand kept prices in check as investors assess U.S-Iran negotiations.
* Gold set for a monthly gain of over 6% * Gold set for seventh straight month of gains. * Silver, platinum, palladium also on track for a monthly rise. By Ishaan Arora. Feb 27 - Gold was broadly steady on Friday as a drop in U.S. Treasury yields eased the opportunity cost of holding bullion, while muted safe-haven demand kept prices in check as investors assess U.S-Iran negotiations.
* Japan's inflation cools, complicating central bank's policy decisions. * Sterling rises after Labour's election defeat in Greater Manchester. * Pakistan escalates conflict with Afghanistan. By Rocky Swift. TOKYO, Feb 27 - Asian shares wobbled while the yen and U.S. Treasuries rose on Friday, as concerns about technology company valuations and geopolitical hotspots weighed on sentiment.
* Yen rallies as geopolitical risks drive haven bids. * Tech stocks pressured by high valuations. * China to scrap FX reserves for some contracts. By Rocky Swift. Dour sentiment persisted in the Asian trading day on Friday as concerns about technology company valuations weighed on shares and Middle East tensions kept energy markets on edge.
Abu Dhabi set an initial price guidance for its two-tranche U.S. dollar-denominated bonds sale, according to an arranging bank document. The indicative price for 5-year bond was set at 50 basis point over U.S. Treasuries, while 10-year debt carried an initial price of 55 bps over the same benchmark, the document, seen by Reuters on Thursday, showed.
* Investors shift from bonds to stocks amid rising risk appetite. * Heavy government and corporate bond issuance pressures Treasury prices. * Yield curve steepens slightly as short-term yields rise. By Gertrude Chavez-Dreyfuss.
* Trump could lay out future trade policy in remarks later. * Investors want to go long Treasuries, rates trader says. * US 2/10 yield curve flattens for 10th straight session. * US rate futures still price in two cuts in 2026. By Gertrude Chavez-Dreyfuss.
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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