Deutsche Bank: Equities and Bonds Under Pressure as Energy Prices Rise - FJElite

Markets had another difficult session, with equities hit by a sharp chip-stock selloff while several global bond yields pushed to multi-year highs. The S&P 500 fell for a third straight session, Germany’s 10-year bund yield reached its highest level since 2011, and oil moved higher again as there remained no sign of progress in US-Iran talks. US Treasuries were the main exception, with the 10-year yield edging lower after weaker US data.

The bond selloff remains the bigger story, driven by longer-term concerns around fiscal deficits and the AI investment boom, alongside renewed near-term inflation pressure. One-year inflation swaps moved higher in both the US and Europe as Brent reached a three-week high above $91 a barrel and European natural gas prices climbed to a three-year high, adding particular pressure to European bonds exposed to the energy shock.