“Red October keeps the financial world on edge as U.S. bond yields surge to 5%, sending shockwaves through global markets.”
In a tumultuous week for global markets, investors are growing increasingly concerned about the escalating conflict in the Middle East and rising borrowing costs. The 10-year U.S. Treasury yield reached 5% for the first time since 2007, causing uncertainty and driving investors to seek safer assets. European and Asian markets experienced significant losses, with Europe’s share markets dropping 1% and Asia stocks hitting an 11-month low. Additionally, the Bank of Japan intervened in its bond markets as the 10-year JGB yield reached a decade high. The fear of wider conflict in the Middle East has also led to a slump in Tesla shares and a decline in emerging market stocks. Gold prices reached a 3-month high as investors sought safe-haven assets, while oil prices rose due to concerns over potential disruptions in supply. The situation is causing market participants to sell off risk and seek safety, with uncertainty lingering as the weekend approaches.