Oil Price Spike Fuels Fed Hike Bets as Treasury Yields Surge

Federal Reserve rate hike bets surged to 38% after Brent crude briefly moved above $100 per barrel, a move that has reversed market confidence in near-term rate cuts.

The increase in oil prices has also lifted Treasury yields and tightened financial conditions across global markets. The two-year Treasury yield reached 4.37%, while the ten-year yield approached 4.7%, increasing borrowing costs for companies and households.

Bitcoin traded near $64,000 as higher bond yields and stronger cash returns reduced the appeal of volatile, non-yielding risk assets.