Bonds & Stocks
A tech-led rebound on Wall Street powered ahead, with stocks joining bonds higher as oil fell amid hopes the US and Iran are getting closer to a deal to end the war that has rattled global markets. The S&P 500 rose 0.6%. The yield on 10-year Treasuries declined two basis points to 4.54%.
Economy
The $31 trillion Treasury market has an unequivocal message for Kevin Warsh’s Federal Reserve: Interest rates aren’t high enough. Yields on policy-sensitive US two-year notes have surged to their highest level in more than a year after a trove of economic data led traders to price in at least one quarter-point rate hike as soon as October.
World
Taiwan authorities are considering much stricter export controls on AI chip sales to China to further align with US measures, according to people familiar with the matter, an effort to address semiconductor smuggling that risks drawing a rebuke from Beijing.