investingLive European session wrap: Yen jumps, oil slides as bond risks linger

Headlines: USD/JPY falls below 158.00 as Takaichi says Trump flagged weak yen pressure Crude oil falls on reports of potential phased US-Iran deal that would reopen the Strait of Hormuz Trump-Xi summit extends the trade truce but leaves the biggest market questions unresolved How have interest rate expectations changed after this week's events? Fed's Williams: Persistent supply shocks are making the inflation fight harder German consumer climate darkens ahead of October as higher energy costs bite Ethereum struggles amid macro headwinds, but renewed US-Iran hopes limit the downside Month-end FX flows point to yen and pound selling, euro buying – BofA Markets: WTI crude oil down 2.4% to $92.36 JPY leads, CHF lags on the day 10-year Treasury yields up 0.9 bps to 5.17% Gold up 0.6% to $4,305 European indices higher; S&P 500 futures +0.4% Bitcoin up 0.5% to $84,725 Despite the continued breakout in Treasury yields this week, broader markets are keeping the calm in European trading today as we approach the final stretch of the week. Lower oil prices are perhaps a reason why investors are able to find a breather, taking away some of the more immediate inflation concerns - for now at least. WTI crude oil is down 2.4% to $92.36 after talks of a phased US-Iran deal that could lead to a reopening of the Strait of Hormuz. In the meantime, ship traffic data remains subdued with just single-digit crossings through the strait over the past 24 hours. But for now, the hopeful optimism is at least helping to pin down oil prices. In the bond market, 10-year Treasury yields continue to look to the upside in nudging to 5.17%. That is off the high yesterday of 5.22% but the mood continues to underscore the narrative that the pressure is still very much on. The selloff accelerated in US trading yesterday and that will remain fresh on investors' minds as we look towards the upcoming session later. The Japanese yen was also a notable mover on the session with USD/JPY dropping back below 15