The US 10-year yield climbed to 4.78%, its highest since January 2025, as higher oil prices and hawkish Fed signals pushed September hike odds above 65% from 36%.

The euro weakened against the dollar following hawkish comments from Federal Reserve Chair Kevin Warsh regarding persistent inflation. Rising regional inflation data in France and Spain have simultaneously strengthened rate-hike expectations for the European Central Bank, keeping policy paths in focus.

US stock futures were flat before Warsh’s Jackson Hole speech.

Allied officials privately warn that dozens of Iranian mines may remain in the Strait of Hormuz, contradicting claims that the waterway was fully cleared.

The US dollar struggled through the final full week of August after the Treasury unexpectedly doubled purchases of longer-dated government bonds, pushing the currency to a more than three-month low.

The US 10-year yield held near 4.7% as expanded Treasury buybacks raised concerns that relief may be temporary.

Japan’s 10-year yield rose to 2.89%, with the probability of a September BOJ hike jumping to 82% from 23% before July’s meeting.

Broad dollar weakness lifted EUR/USD to $1.168, a three-month high, while GBP/USD topped $1.363, its strongest in six months.