Elevated government bond yields continue to edge to new highs, taking the shine off stocks around the world.

In afternoon trading, the 10-year Treasury yield moved up to 5.16%, poised to close at a fresh 19-year record.

Oil prices have been pushing bond yields around in recent hours, with investors weighing dissonant reports of recent Houthi attacks and of discussions about a phased deal to reopen the Strait of Hormuz. The most actively traded Brent contract has been volatile, recently trading 2.8% higher to $100.91 a barrel.

More broadly, traders are beginning to more seriously worry about how higher yields could weigh on stock valuations and damp the appeal of holding equities. Stock indexes are down less than 0.5%. The 30-year Treasury yield yesterday hit its highest level in 22 years. Borrowing costs in Asia and Europe are also up.

Another focus for traders today will be the summit between President Trump and Chinese leader Xi Jinping. Last night, Treasury Secretary Scott Bessent said the U.S. and China will extend a bilateral trade truce until mid-January, avoiding higher levies that were set to be imposed in November if no agreement was reached.