Oil Prices Surge Past $100 as Bond Yields Reach 15-Year High

Markets are under pressure due to rising oil prices and higher bond yields. The price of Brent crude oil has surpassed $100, while 10-year Treasury yields have reached a 2007 high of 5.12%. This double whammy is putting inflation fears back in focus.

The surge in bond yields is particularly concerning for risk assets, with equities already taking a hit yesterday and continuing to fall today. European indices are down, with the DAX off by 0.4% and CAC 40 down by 0.2%. US futures are also settling lower, with S&P 500 futures down 0.6% and Nasdaq futures down by 1.0%.

The Swiss National Bank (SNB) left its policy rate unchanged at 0%, as expected, but softened its intervention stance on the franc currency. This move may indicate that the SNB is no longer concerned about a strong franc.