US yields keep climbing, squeezing currency markets
A renewed surge in US yields is sucking the air out of global financial markets this morning, putting equities, commodities, and risk-sensitive currencies deep in the red. With yields on ten-year Treasuries flirting with the 5 percent threshold for the first time since before the global financial crisis and rate differentials tilted firmly in the dollar’s favour, the greenback is crushing its major rivals, pushing further into overbought territory. The Israel-Hamas conflict continues to pose a threat to markets, but safe-haven flows are generally subsiding as the perceived risk of a regional escalation falls. Momentum is fading in gold and...