Bonds & Stocks
A selloff in chipmakers sent stocks lower, with the market also falling as inflation angst and rising government debt kept bond yields elevated. The S&P 500 fell 0.5%. The yield on 10-year Treasuries was little changed at 4.72%.
Economy
Longer maturity bonds are at the epicenter of investor angst about everything from inflation to the debt-laden artificial-intelligence boom – and governments are paying the price. Sovereign borrowing rates are surging around the world. Yields on 30-year US Treasuries rose to the highest since 2007 this week, while French borrowing costs hit the loftiest since 2008 and their German peers traded at 2011 levels. Equivalent gilt yields are approaching 6% in the UK and similar-maturity Japanese ones are close to their all-time high.
World
US President Donald Trump insisted Tuesday that there were no talks ongoing with Iran, leaving the simmering conflict in the Middle East and control of the Strait of Hormuz stuck in limbo.