Good morning, and happy Sunday. This week the energy shock arrived in the one market nobody can avoid. The US 30-year Treasury yield touched 5.67% and the ten-year 5.33%, both 24-year highs. Deutsche Bank's Jim Reid noted that ten-year yields have now risen for seven months in a row, the first such run since 2011. Brent is up 42% from its June low and closed Thursday above $102, after at least three tankers were attacked in the Strait of Hormuz. Europe is not a bystander. The ten-year Bund reached a 17-year peak near 3.65% before easing to 3.53%. German inflation rose to 3.3% in September and Spain's to 4.9%. Money markets put the ECB deposit rate near 2.8% by December and around 3.4% by late 2027. The euro fell to its weakest level in sixteen months. In Tokyo, the ten-year JGB yield passed 3.1%, a 30-year high. Now look at where the shock did not land. Eurelectric's Power Barometer, published on Wednesday, shows gas prices up 88.4% between February and August, while EU electricity...
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