Australiacrude

Goldman economist Farouk Soussa talks about why the Strait of Hormuz doesn't need to come back to 100% for the full amount of oil from the Gulf to come back into the market, and the longer-term outlook for crude amid the US-Iran negotiations.

Jeff Sherman, Deputy Chief Investment officer at DoubleLine Capital, joined the program to analyze recent developments in the U.S. Treasury market. The discussion focused on recent moves in Treasury yields, including a notable drop in the 10-year yield by 10 basis points to just above 4.3%. He speaks with Romaine Bostick & Katie Greifeld on "The Close."

The price of Brent crude rose by more than US$1 to US$81.66 a barrel following the conclusion of diplomatic talks between the United States and Iran in Switzerland.

Kelly Burton, High Yield Portfolio Manager at Barings, discussed the current dynamics in the high-yield credit market, emphasizing strong institutional demand for double B and single B rated credits with yields between 6-8%. Despite elevated yields expected to persist regardless of Federal Reserve actions, Burton noted a complex macroeconomic environment influenced by inflationary pressures, partly driven by geopolitical tensions such as the Iran conflict and high oil prices. She speaks with Romaine Bostick & Katie Greifeld on "The Close."

Alan Blinder, former Federal Reserve Vice Chair and current professor at Princeton University, provided insights on the Federal Reserve's newly outlined five task forces, emphasizing the market's keen interest in the Fed's communications strategy and its approach to using existing economic data. Blinder clarified that while the Fed produces some data such as industrial production and interest rates, most critical economic indicators like inflation, unemployment, and GDP come from other statistical agencies. He speaks with Romaine Bostick & Katie Greifeld on "The Close."

Ian Lyngen, head of US rates strategy at BMO Capital Markets, discusses what to expect from the Federal Reserve's first policy decision under Chair Kevin Warsh. "The energy shock remains extremely topical for monetary policymakers and will probably ultimately drive the tone of what we hear from Warsh," he tells Bloomberg Television.

Brent oil fell below $80 a barrel for the first time in more than three months as the US-Iran deal to reopen the Strait of Hormuz boosted expectations for a revival in supply, with leading Wall Street banks reducing their price forecasts and regional benchmarks collapsing. Gasoline prices are also falling. Bloomberg Mike McGlone joins to discuss.

Libby Cantrill, PIMCO Head of Public Policy, discussed the recent developments in negotiations involving Iran, emphasizing that what has been achieved is more of a detente than a comprehensive deal. She highlighted the uncertainty surrounding key issues such as Iran's nuclear program, funding of proxies, and the stance of regional players like Israel. She speaks with Romaine Bostick & Katie Greifeld on "The Close."

UBS Head of Taxable Fixed Income Strategy Leslie Falconio says pressure on the Fed to hike rates is easing now that the US and Iran have reached a deal to reopen the Strait of Hormuz. She has now pushed out her call for a rate cut in 2027.

Oil prices increased by about 2% following escalated threats from the US President to 'hit Iran hard' after delays in peace negotiations. Retired US Army Brigadier General Mark Kimmit, Former Assistant Secretary of State for Political Military Affairs, joined the discussion to analyze the shift in US posture. He speaks with Romaine Bostick & Katie Greifeld on "The Close."