Rising US Treasury yields and a stronger dollar reflect investor caution amid Middle East tensions and semiconductor supply concerns.
US Treasury yields climbed, with the 10-year note trading near 4.50% and the two-year yield at 4.088%. The moves follow mixed geopolitical signals, including heightened Middle East risks and stalled US-Iran nuclear talks.
The US dollar strengthened against major currencies, posting its largest gain versus the NZD (+1.06%). Other moves included gains of 0.66% against the CHF and 0.65% versus the AUD. Equities retreated, with the Dow down 0.86% and the Nasdaq falling 0.97%.
Automakers and electronics firms warned of sustained chip shortages, potentially driving near-term price increases for consumers. Treasury Secretary Bessent noted improved but fragile US-China relations, pending further trade commitments.