Saudi Oil Exports Face 4% Global Supply Threat as Pipeline Remains Shut 
Oil Prices Surge as Houthi Attacks Raise Saudi Supply Fears 
Asian Stocks Fall as AI Fears and Oil Surge Hit Markets 
China Home Prices Fall Again as Property Slump Drags on Growth 
US Futures Fall as Fed Meeting, Oil Surge Rattle Markets 
Asian Tech Stocks Slide as AI Concerns and Rising Bond Yields Hit Chipmakers 
EUR/USD Eyes 1.17 as Fed Decision Could Weigh on Dollar 
China Industrial Output Beats Forecasts as Exports Support Growth 
Global Central Banks Brace for More Rate Hikes as Inflation Risks Rise 
Gold Prices Fall as Hot U.S. Inflation Boosts Fed Rate Hike Bets 
Gulf Ministers to Meet Iran in Oman Over Hormuz Shipping Deal 
BOJ Set to Raise Rates to 1.25% as Inflation Risks Build 
Treasury Buyback Fails to Cool Long-Term Yields 
Japanese Yen Retreats as Dollar Rises Ahead of Fed, BOJ Rate Decisions 
UK Wage Growth Slows as BoE Rate Decision Looms 
Gold Prices Steady as Oil Disruptions Boost Fed Rate Hike Bets 
Finland Raises 2026 Growth Forecast as Exports and Investment Surge 
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German short-term borrowing costs climbed sharply on Tuesday as investors increased bets that major central banks will keep monetary policy restrictive to combat energy-driven inflation.
Germany’s policy-sensitive two-year Schatz yield rose to its highest level since late 2023, reflecting growing expectations for additional interest rate hikes from the European Central Bank and other major central banks.
Longer-term German bonds showed some relief after several sessions of heavy selling. The benchmark 10-year Bund yield slipped from its highest level since 2009 to around 3.518%, while the 30-year Buxl yield retreated to 3.875%, ending a three-session rise.
The moves come after the ECB raised its key interest rate by 25 basis points to 2.50% last Thursday. Markets are now fully pricing in another quarter-point ECB rate hike before the end of 2026, with two further increases expected by February 2027.
Global monetary policy is also adding pressure to European bond markets. The Federal Reserve begins its two-day policy meeting on Tuesday, with interest rate futures indicating roughly a 90% probability of a 25-basis-point increase on Wednesday. Such a move would mark the Fed’s first rate hike since mid-2023.
The Bank of Japan is also widely expected to increase its policy rate by 25 basis points to 1.25% later this week, reinforcing expectations for synchronized global monetary tightening.
Energy prices remain a major inflation risk. Brent crude futures climbed another 1.2% on Tuesday to above $113 per barrel after Saudi Arabia blamed Iran-backed forces for an attack on its East-West pipeline. The disruption could threaten as much as 4% of global oil supply.
Additional Houthi attacks in the Red Sea and delayed transit negotiations in Oman have intensified concerns about prolonged energy supply disruptions. Persistently high oil prices could keep inflation elevated, strengthening the case for further central bank rate hikes and maintaining upward pressure on short-term German bond yields.
