Bonds & Stocks
A rally in bonds fizzled out and stocks fell on bets the Treasury plan to curb borrowing costs is just a short-term fix, with a renewed surge in oil prices stoking worries about inflation. The S&P 500 fell 0.2%. The yield on 10-year Treasuries advanced five basis points to 4.70%.
Economy
US bonds unwound all of the gains that followed the Treasury Secretary Scott Bessent’s plan to increase buybacks of longer-dated debt, a sign that investors see it as only a short-lived remedy to curb borrowing costs.
World
US President Donald Trump threatened Iran and its trading partners with economic isolation after months of military strikes and a maritime blockade failed to force Tehran to capitulate.