US Bond Yields Surge to 19-Year High; Gold and Silver Prices Plunge
On.cc · 1 SOURCESabout 3 hours ago2 MIN
Summary
The US 10-year Treasury yield surged to 5.236% on Monday, marking its highest level since 2007 and reflecting heightened expectations that the Federal Reserve may continue raising interest rates by year-end . The combined pressure of rate concerns and President Trump's rejection of Iran's proposal to reopen the Strait of Hormuz pushed Brent crude oil briefly above $100 per barrel . In a sharp contrast, gold and silver prices experienced a dramatic selloff, with spot gold plunging more than 4% to $4,111 per ounce and spot silver tumbling 5% to $60 per ounce, as both metals moved inversely to the dollar and Treasury yields .
Key Points
- The US 10-year Treasury yield rose 7 basis points to 5.236% on Monday, the highest since 2007
- Spot gold fell over 4% to approximately $4,111 per ounce while spot silver dropped 5% to around $60 per ounce
- Brent crude briefly surpassed $100 per barrel following geopolitical tensions over the Strait of Hormuz
- Citigroup analysts described the China-US summit outcomes as "moderate but pragmatic," noting stable commitments may ease risks of new AI infrastructure restrictions
- Goldman Sachs said the 2-month trade truce extension was shorter than expected, suggesting deep tensions between the two nations persist
- US AI investment reached nearly $300 billion last year and accelerated to $466 billion in the first half of this year
- Saudi Arabia's September crude exports surged to 6 million barrels per day, up 80% from August's 3.4 million, the highest in 7 months
- The People's Bank of China set the renminbi central parity at 6.7399 per dollar, a 3-year-8-month high
Why It Matters
The 19-year high in US Treasury yields signals tightening global financial conditions that could dampen risk appetite across Asian markets . For Hong Kong investors, the divergence between rising oil prices and falling precious metals reflects a complex macro environment where energy costs may fuel inflation concerns while the strong dollar limits the renminbi's recovery despite the China-US diplomatic thaw . The continued uncertainty in US-China relations, as highlighted by Wall Street banks, means Hong Kong's export-driven economy and financial markets face ongoing volatility from structural competition between the world's two largest economies .
The 19-year high in US Treasury yields signals tightening global financial conditions that could dampen risk appetite across Asian markets . For Hong Kong investors, the divergence between rising oil prices and falling precious metals reflects a complex macro environment where energy costs may fuel inflation concerns while the strong dollar limits the renminbi's recovery despite the China-US diplomatic thaw . The continued uncertainty in US-China relations, as highlighted by Wall Street banks, means Hong Kong's export-driven economy and financial markets face ongoing volatility from structural competition between the world's two largest economies .