US: 10-Year Yield Eases from 5%.

The yield on the 10-Year US Treasury note eased to 4.96% on Monday after having tested a 19-year high of 5.01% earlier in the session, tracking the slight pullback for key energy prices as markets gauged the magnitude of inflation risks. Wholesale fuel prices eased after President Trump signaled that Russia and Ukraine would halt strikes on energy infrastructure. Still, energy inflation continued to pressure Treasuries across the curve as recent data suggested that tariffs and high fuel costs had impacted underlying inflation gauges. Money markets show that the Federal Reserve is expected to raise its rates by 25bps on Wednesday. In turn, long-maturity Treasury yields have also been supported soaring levels of corporate debt by AI companies, limiting allocation of capital by primary dealers and other financial institutions. Lastly, hawkish expectations for the ECB and BoJ also pressured bonds.