CNBC Daily Open: Two market forces battle for dominance
Bond yields and oil prices keep investors' attention ahead of key inflation data that could set the course for the Fed.
TL;DR
- The 10-year U.S. Treasury yield is close to 5%, its highest since November 2023, despite Treasury Department intervention.
- Oil prices have surged, with West Texas Intermediate crude futures exceeding $100 per barrel and Brent crude futures reaching their highest settlement price since May 19.
- Friday's U.S. CPI inflation data is expected to show a 0.4% rise in August, bringing the annual rate to 3.4%.
- The Federal Reserve is now seen as over 70% likely to hike benchmark rates next week, with a possibility of a second increase before year-end.
- The ECB recently hiked rates to 2.5% due to rising prices and government borrowing costs.