Geopolitical Tensions Set the Tone for the Week Ahead

• Risk-off sentiment surged as markets reacted to fears of further escalation between Israel and Iran. Investors sought safe-haven assets, while oil prices jumped on supply concerns, raising inflation risks.
• US bond yields rose on Friday, with the 10-year Treasury up 5bps to 4.41% and the 2-year rising 4bps to 3.95%.
• The G7 Summit began in Alberta, with the Israel–Iran conflict expected to dominate discussions, alongside global trade and inflation concerns.
• Locally, May employment data is due Thursday, while in the US the FOMC meets Wednesday, both events are key for shaping interest rate expectations.