South Korea, US Discuss Warship Building Cooperation 
Mexico-US Trade Talks Delayed to October as Tariff Negotiations Continue 
US Stock Futures Fall as Treasury Yields Surge Ahead of Trump-Xi Summit 
Trump, Xi Focus on Trade and AI at White House Summit 
Oil Prices Ease as Iran Tensions Clash With Diplomacy Hopes 
Wall Street Ends Flat as Oil, Treasury Yields and Fed Jitters Rattle Markets 
Asian Stocks Fall as Bond Yields Surge Ahead of Trump-Xi Summit 
US, China Extend Trade Truce to Jan. 10 Ahead of Trump-Xi Summit 
Asian Currencies Mixed as Dollar Holds Near Two-Month High 
Gold Prices Fall as Treasury Yields Rise on Fed Rate Hike Bets 
Japan Private-Sector Growth Slows as Domestic Demand Weakens 
Dollar Holds Near Two-Month High as Yen Approaches 160 
Oil Prices Surge as U.S.-Iran Diplomacy Hopes Fade 
Fed Unveils Stablecoin Rules Under GENIUS Act 
U.S. 10-Year Treasury Yield Hits 2007 High as Fed Rate Hike Bets Rise 
Asian Stocks Fall as Surging Bond Yields Rattle Markets 
Wall Street Falls as Treasury Yields Surge, Oil Rebounds on Iran Tensions 
Add as a preferred source on Google
The U.S. dollar weakened on Monday as the global bond market sell-off showed signs of slowing, while investors remained cautious over ongoing geopolitical tensions between the United States and Iran. The U.S. Dollar Index, which measures the greenback against a basket of major currencies, fell 0.3% to 99.19 after recording its strongest weekly performance in more than nine months.
Global bond yields had surged last week after inflation data from major economies highlighted the economic impact of rising oil prices linked to the Iran conflict and the continued disruption of the Strait of Hormuz. Investors responded by increasing expectations that central banks, including the Federal Reserve, may continue raising interest rates throughout 2026. However, market pressure eased slightly on Monday as U.S. Treasury yields stabilized.
According to the CME FedWatch Tool, traders are now pricing in the possibility of additional Federal Reserve rate hikes at upcoming policy meetings. Analysts believe inflation risks remain elevated due to geopolitical instability and higher energy costs. Moody’s Analytics Chief Economist Mark Zandi warned that persistent inflation expectations could force the Federal Reserve to maintain aggressive monetary tightening, even if it weakens economic growth.
Meanwhile, U.S. President Donald Trump announced that a planned military strike on Iran had been delayed following diplomatic requests from Gulf leaders. Trump stated that negotiations with Tehran were ongoing and emphasized that any future agreement must ensure Iran does not develop nuclear weapons. Despite renewed diplomatic efforts, major disagreements remain over Iran’s nuclear program, sanctions, and control of the Strait of Hormuz.
In currency markets, the euro and British pound gained against the dollar, while the Japanese yen weakened slightly. Investors are also closely monitoring the ongoing G7 finance ministers meeting in France, where policymakers are discussing the economic consequences of the Middle East conflict and increased market volatility.
