US-Iran Tensions Fuel Oil Price Surge

The US has rejected Iran's latest offer and appears to be moving more forces into the region. This development has sent oil prices higher, which in turn is pushing up yields.

Japanese officials have returned to the intervention escalation ladder ahead of the weekend to play up ongoing coordination with the US Treasury.

The combination of lower US rates and rising oil prices helped US equity indices extend last week's gains. The dollar has become firmer against most major currencies, including the yen.