### Trump Rejects Iran’s Proposal; 10-Year Treasury Yield Hits 5.25%
On Monday, President Donald Trump rejected Iran’s offer to de-escalate tensions in the Strait of Hormuz, which included lifting U.S. sanctions and a regional ceasefire. Iran’s proposal, made at the United Nations, required U.S. concessions to take place before any commitments to reopen the strait or enter a nuclear agreement. The rejection has contributed to a sell-off in stock markets, as geopolitical tensions mount.
In related financial news, the 10-year Treasury yield surged to 5.25%, marking its highest level since 2007. This rise comes amid fears of a global economic slowdown, with analysts warning that yields above 5% could impact consumer spending and Big Tech revenues. Currently, the 30-year fixed mortgage rate sits at 7.03%, further freezing the housing market and indicating mounting consumer strain.
Investors are now looking ahead to the upcoming Personal Consumption Expenditures (PCE) report due Wednesday, which could provide more insights into inflation trends and consumer spending behavior. The Fed’s response to the data may influence both the prime lending rate and the trajectory of the 10-year yield, posing additional risks for economic stability.
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