**U.S. Yields Rise Amid Global Tensions** U.S. yields increased today: the 2-year yield is at 3.952%, up by 4.6 basis points; the 5-year yield is at 4.008%, up by 4.9 basis points; the 10-year yield is at 4.408%, up by 5.2 basis points; and the 30-year yield is at 4.901%, up by 5.9 basis points. Although the U.S. dollar lost some strength later in the day, it still closed higher against all major currencies. For the day, the dollar saw gains against: – EUR: +0.38% – GBP: +0.39% – JPY: +0.39% – CHF: +0.15% – CAD: +0.06% – AUD: +0.72% – NZD: +0.96% U.S. stocks declined, affecting weekly performance: the Dow dropped by 1.79% for the day and 1.32% for the week, the S&P decreased by 1.13% and 0.39%, and the NASDAQ fell by 1.30% and 0.63%. Ongoing geopolitical tensions and expected central bank decisions are likely to keep markets unpredictable. The Federal Reserve and Bank of Japan will reveal their policies soon. Economic data from the U.S., Australia, and the UK will give insights into global growth trends. **Market Volatility and Economic Impact** The current situation indicates that rising geopolitical risks—especially concerns over a military move from Israel toward Iran—have strengthened the U.S. dollar. This isn’t surprising; when uncertainty grows, investors look for safer options, often favoring the dollar. However, the unexpected increase in U.S. government bond yields is surprising. Yields usually drop during these times, but today they rose instead. The increase in yields is linked to worries about inflation and key technical levels. Bond markets react not only to real-world events but also to price levels traders monitor. For example, the 2-year note rose after staying near 4%, the 10-year surpassed 4.5%, and the 30-year approached 5%. When these levels are breached, price movements tend to quicken. What sets this situation apart is the combination of geopolitical stress and inflation fears. With oil prices potentially rising due to instability in the Middle East, traders are concerned about higher energy costs, which would make controlling inflation harder. Consequently, rising yields show that the market is reassessing the future actions of central banks, not just responding to regional tensions. The dollar, after a strong start, weakened slightly before the day ended but still finished higher overall. The gains were most significant against commodity-linked and volatile currencies like the New Zealand and Australian dollars, which are sensitive to global trade and risk sentiment. The British pound and euro also weakened, though not as much, while the yen continued to struggle. Create your live VT Markets account and start trading now.

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