US Yields Surge, Stocks Stumble: Market Volatility Continues

US Treasury yields reached their highest level since the 2007-2008 global financial crisis, causing a sell-off in Asian and European stocks and driving the dollar to a 10-month high. The rise in yields, along with concerns of a US government shutdown and a bearish steepening of the US yield curve, led to a skittish market mood. Traders are now uncertain about the likelihood of a January Fed rate hike and have pushed the expected start of rate cuts to summer. The dollar's strength against the yen has raised concerns of a potential intervention by Japanese authorities, while gold prices have declined and crude oil remains weak due to fears of reduced fuel demand.