News

(1) US Treasuries edged lower amid light overnight trading, while West Texas Intermediate crude oil rebounded slightly to $75.41 per barrel. The stabilization of energy prices weakened safe-haven demand for government bonds. (2) Trading volume was extremely light; as of 18:11 Beijing time, only about 196,000 contracts of 10-year Treasury futures had been traded, with the September contract fluctuating between 109-26.5 and 109-30.5, last quoted at 109-27.5. (3) In terms of risk assets, the S&P 500 Index edged higher, the Euro Stoxx 50 Index rose 0.5%, the Nikkei 225 Index closed up 0.7%, and the CSI 300 Index's gain approached 1%, reflecting a generally mild optimistic market sentiment. (4) German bunds rose modestly by about 0.25 percentage points, and the US-German 10-year yield spread widened by about 1.5 basis points compared to the European close, reaching 151 basis points and returning to recent highs. (5) The US Dollar Index edged up to 99.62; both the euro and pound softened mildly against the dollar, the yen strengthened slightly against the dollar to 160.20, and gold remained stable at $4,331.27 per ounce.

US President Trump: Oil prices may fall below pre-war levels

According to QCP Market Colour, the United States and Iran have signed a memorandum of understanding and given signals for the reopening of the Strait of Hormuz, supporting risk assets. US stock futures rose and crude oil prices fell below $75. QCP stated that, on the macro level, attention should be paid to the Federal Reserve’s dot plot guidance on short-term restrictive policy paths. In the crypto market, BTC remains stuck below $66,000, and concerns related to Strategy funding needs are dampening market sentiment, with Bitcoin failing to follow the broad rebound in risk assets.