Wall Street Breakfast: Treasury Yields Keep Climbing

Government borrowing costs are continuing to grind upwards. The 10-year Treasury yield has broken through 3.1% - its highest level since July 2011 - as higher oil prices pointed to increased inflation following yesterday's upbeat U.S. retail sales numbers. Economic figures today - like jobless claims - could boost yields further as market players become even more confident about upcoming Fed rate hikes.
Economy
The European Union must protect EU companies doing business with Iran, French President Emmanuel Macron declared, as firms begin to pull out of the country. Total (NYSE: TOT) has halted work on an Iranian natural-gas project and warned it may have to abandon its plan to invest $1B in the field. Maersk Tankers (OTCPK: AMKAF), Torm (OTC:TRMSF) and Wintershall have also stopped their dealings with the Islamic Republic.
German Chancellor Angela Merkel has signaled that the EU is willing to discuss reducing trade tariffs with the U.S. as she arrived at a summit of bloc leaders in Sofia, Bulgaria. "We have a common position. We want a permanent exemption and then we are ready to talk how we can reciprocally reduce the barriers to trade." The U.S. tariffs are set to go into effect on June 1.
Japan - the only major U.S. ally that did not receive exemptions from President Trump's steel and aluminum tariff decision - is meanwhile considering slapping retaliatory tariffs on U.S. exports worth $409M. According to public broadcaster NHK, the government... Read more