Oil Price Surge and Bond Yields Pressure Markets

The European session was marked by rising oil prices and surging bond yields, putting pressure on markets. Brent crude briefly touched above $105, while 10-year Treasury yields hit 5.15%, their highest since 2007.

This has led to a warning signal for risk assets, with equities taking a hit. European indices are down, with the DAX off by 0.4% and CAC 40 down by 0.2%. US futures are also lower, with S&P 500 futures down 0.6%.

The SNB left its policy rate unchanged at 0%, as expected, but softened its intervention stance on the franc currency. This led to a slight weakening of the franc against the euro.