Oil surge pushes Spanish bond yields to 2013 highs

Oil price gains moderated to about 2% after US President Donald Trump rejected Iran's proposal to reopen the Strait of Hormuz, though Brent briefly exceeded $108 per barrel. The surge pushed Spanish 10-year bond yields to intraday highs not seen since December 2013. Brent has risen nearly 20% this month, fueling inflation concerns and expectations of further interest rate hikes. US two-year Treasury yields climbed four basis points to 4.9%, while European bond yields also rose, with France's 10-year hitting 2008 highs and Germany's reaching 2009 levels. Stocks were mixed, with Wall Street down about 0.5% and Europe slightly higher. Gold fell 3% to $4,188 per ounce and silver dropped 4%. Markets fully price in at least one more 25-basis-point Fed rate increase this year, with US payroll data due Friday.