Oil Prices Soar Above $100 Amidst Rising US Bond Yields

Rising oil prices and soaring US bond yields are putting pressure on global markets. Brent crude futures rose nearly 2.5% to $107.20 per barrel, while WTI crude futures increased by 2.44% to $102.49, marking the first time oil prices have crossed $100 since May.

The US 10-year Treasury yield reached 4.977%, the highest since 2007, while the 30-year yield hit 5.367%, increasing borrowing costs and potentially stifling economic growth.

Market volatility is on the rise as traders are pricing in an 86.5% chance of a 25 basis point rate hike by the Federal Reserve in September, significantly up from 59.4% last week, reflecting concerns over inflation and interest rate outlook.