2026

By Rae Wee

SINGAPORE, May 18 (Reuters) – Bonds from Tokyo to New York extended losses on Monday as rising energy prices from the ongoing Middle East war fanned inflation fears and stoked investor wagers on rate hikes from global central banks.

Benchmark 10-year U.S. Treasury yields, which move inversely to prices, jumped to their highest since February 2025 in early Asia trade at 4.6310%, having climbed more than 20 basis points last week.

The two-year yield touched a 14-month top of 4.1020%, while the 30-year U.S. Treasury yield rose to a one-year high of 5.1590%.

The moves came on the back of a climb in oil prices on Monday, as efforts to end the Iran war appeared to have stalled following a drone strike at a nuclear power plant in the United Arab Emirates.

“Fresh drone attacks on the UAE’s Barakah nuclear plant and Saudi territory, coupled with Trump’s ‘clock is ticking’ ultimatum and a planned Situation Room meeting on Tuesday, have sharply elevated the risk of renewed full-scale hostilities,” said analysts at OCBC.

More than two months into the Middle East war, investors are beginning to fret about the economic fallout from the conflict as inflationary pressures mount and what that would mean for the global interest rate outlook.

“The ‘higher for longer’ story is coming back, even if actual rate hikes are still not the base case,” said Charu Chanana, Saxo’s chief investment strategist.

Markets are now pricing in a more than 50% chance the Federal Reserve would raise rates by December, according to the CME FedWatch tool, while the European Central Bank is seen hiking as early as next month and the Bank of England about twice this year.

The move in U.S. Treasury yields spilled over to the broader market, with Germany’s bund futures and French OAT futures falling about 0.4% each in early trading.

In Japan, yields on the 30-year Japanese government bond (JGB) jumped 17 bps to their highest on record at 4.170% while the 10-year yield touched its highest since October 1996 at 2.800%.

The selloff in JGBs accelerated after Reuters reported that Tokyo will likely issue fresh debt as part of funding for a planned extra budget to cushion the economic blow from the Middle East war.

(Reporting by Rae Wee; additional reporting by Ankur Banerjee; Editing by Sam Holmes)

source

May 17 (Reuters) – Online fast-fashion platform Shein is acquiring Everlane from majority owner L Catterton in a deal valuing the U.S.-based apparel retailer at about $100 million, Puck News reported on Sunday, citing people familiar with the matter.

Those with common stock in Everlane will not receive a payout, the report said. There was no information on whether preferred shareholders would receive cash or shares in Shein as part of the deal. 

Reuters could not immediately verify the report. Everlane, Shein and L Catterton did not immediately respond to Reuters’ requests for comment. 

Brands like Shein and Temu have disrupted the local retail landscape through aggressive pricing, strategic marketing, and using tax loopholes that initially gave them a competitive edge over local retailers.

Puck News reported in March that private equity firm L Catterton and Everlane Chief Executive Alfred Chang had been seeking an investor to address roughly $90 million in debt.

The private equity firm was willing to inject additional funds if a co-investor emerged, but was also open to a sale, according to the report. 

(Reporting by Preetika Parashuraman in Bengaluru; Editing by Subhranshu Sahu)

source

By Florence Tan

SINGAPORE, May 18 (Reuters) – Oil prices extended gains on Monday as efforts to end the U.S.-Israeli war on Iran appeared to have stalled, after a nuclear power plant in the United Arab Emirates came under attack and as U.S. President Donald Trump is expected to discuss military options on Iran.

Brent crude futures climbed $2.03, or 1.86%, to $111.29 a barrel by 0220 GMT, after touching $112 earlier, the highest since May 5.

U.S. West Texas Intermediate crude was at $107.73 a barrel, up $2.31, or 2.19%, following a rise to $108.70, its highest level since April 30. The front-month June contract expires on Tuesday.

Both contracts gained more than 7% last week as hopes of a peace deal that would end ship attacks and seizures around the Strait of Hormuz dimmed. Last week’s talks between Trump and Chinese President Xi Jinping ended without an indication from the world’s top oil importer that it would help resolve the conflict.

“The longer the conflict with Iran persists, the greater the risk of protracted oil price scarring, which could keep interest rates higher for longer,” Prestige Economics’ Jason Schenker said in a note.

“This could also present persistent downside risks to growth.”

Drone attacks on the UAE and Saudi Arabia and rhetoric from the U.S. and Iran raised concerns of an escalation in the conflict.

Emirati officials said they were investigating the source of the strike on the Barakah nuclear power plant and that the UAE had the full right to respond to such “terrorist attacks.”

Saudi Arabia, which intercepted three drones that entered from Iraqi airspace, warned it would take the necessary operational measures to respond to any attempt to violate its sovereignty and security.

“These drone strikes are a pointed warning – renewed U.S. or Israeli strikes on Iran could trigger more proxy attacks on Gulf energy and critical infrastructure by Iran or its regional proxies,” IG market analyst Tony Sycamore said.

Trump is expected to meet top national security advisers on Tuesday to discuss options for military action regarding Iran, Axios reported.

Separately, in a move that could support oil prices, the Trump administration on Saturday allowed a sanctions waiver to lapse that had previously allowed countries including India to buy Russian seaborne oil after a month-long extension.

(Reporting by Florence Tan; Editing by Edmund Klamann, Chris Reese and Kate Mayberry)

source