The 10-year US Treasury yield rose to 4.808% in early European trading on September 8, while the dollar index fell despite the yield increase, a divergence that typically signals investor concern about the broader economic outlook. Brent crude climbed 2.2% to $99.10 per barrel, approaching the psychologically important $100 level as geopolitical tensions between the US and Iran raised fears of potential supply disruptions. Two major central bank decisions loom: the European Central Bank is widely expected to raise its deposit rate by 25 basis points to 2.50% on September 10, and futures markets are pricing in a 59% probability of a Federal Reserve rate hike on September 16. With the 10-year yield near 4.8% and oil prices threatening to reignite inflation pressures, borrowing costs are set to remain punishing for corporations and consumers alike.
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