Global Markets in Flux: As U.S. Treasury Yields Retreat, Dollar Gains

U.S. Treasury yields decreased from an eight-month high while the dollar gained strength. Investors reassess the Federal Reserve's 2025 rate policy amid signs of U.S. economic resilience. The market awaits the U.S. payrolls report to gauge future interest rate actions. Oil and gold prices rose alongside currency fluctuations.

U.S. Treasury yields fell on Thursday from recent highs, with the dollar strengthening as investors reassessed the Federal Reserve's interest rate strategy for 2025. The 10-year U.S. Treasury yield dropped to 4.689%, retreating from Wednesday's peak of 4.73%.

A global bond selloff and concerns over the U.K.'s economy are impacting the pound, pushing gilts to levels not seen in over 16 years. Market eyes are on the U.S. payrolls report due Friday for new insights into the Fed's future policy direction.

Further market movements followed a CNN report that President-elect Trump might declare a national economic emergency. Stock and bond markets exhibited mixed reactions, with European shares closing higher and U.S. markets temporarily shut for a funeral observance.

(With inputs from agencies.)