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Commerzbank Says Oil Prices Rise but Below Highs, Treasuries Find Support

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Brent oil is higher but remains below $89 a barrel as the possibility of a Middle East peace deal has stalled, according to Commerzbank Research.

President Donald Trump said the US would "retain full control" over the Strait of Hormuz, while Iran has rejected the declaration, according to Commerzbank.

Treasuries weakened late in the New York session but found better support early Thursday, said the bank. The new 10-year Treasury, sold late Wednesday at its highest yield since 2007, drew decent investor demand.

The government of Prime Minister Sanae Takaichi is pushing for the Bank of Japan to raise rates more quickly, according to Bloomberg sources.

Long-term Japanese government bonds remain under pressure, with the gap between short- and long-term yields widening, added Commerzbank.

Germany expects a Russia-linked influence campaign ahead of next month's regional elections, said the bank.

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