Rising Yields and Tech Sell-Off Ahead of July FOMC Minutes

Bond yields and monetary policy

• Pressure on sovereign yields: The US 30-year Treasury yield reached 5.34%, its highest level since June 2007. In Germany, 10-year and 30-year borrowing costs also hit 15-year highs, driven by rising public debt and defense spending requirements.
• US monetary policy: Investors remain cautious ahead of the release of the minutes from the Federal Reserve's July monetary policy meeting, seeking clues on the future interest rate trajectory.

Indices, tech sector, and geopolitics

• Semiconductor sell-off: Rising yields and oil-driven inflation fears triggered a sharp pullback in the tech sector. In the US, SanDisk (-9%), Marvell Technology (-9%), Seagate (-8%), and Western Digital (-7%) posted steep losses, dragging down Nvidia and Micron as well. In Europe, STMicroelectronics dropped 7.64%.
• Index markets: US equity futures are trading near flat. In Paris, the CAC 40 recorded its sixth consecutive session of losses (-0.82% to 8,509.36 points), testing the 8,500-point support level.
• Geopolitics and trade: Oil tanker traffic in the Strait of Hormuz slowed (6 vessels on Tuesday versus a 10-day average of 11) amid the ongoing war in Iran and the US naval blockade. Meanwhile, Donald Trump delayed the implementation of 50% tariffs on Canada by three days, stating a trade deal is close.

To watch today

• Release of the FOMC minutes from the Federal Reserve's July meeting.
• US corporate earnings, including reports from Target and Analog Devices.
• Sovereign yield trends and security developments in the Strait of Hormuz.