Bond Selloff Drives Risk Aversion, US-Iran Peace Prospects Dim | The Opening Trade 8/18/2026

Stock indices declined as long-dated bond yields reached multidecade highs and oil prices rose, with traders reducing positions in higher-risk assets. Bond market investors are requiring higher yields to finance government debt and account for elevated inflation levels. No imminent resolution to the US-Iran conflict is expected, according to market participants monitoring the situation.

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