Bonds sank as oil prices extended further above $100 a barrel, adding pressure to already jittery markets.

Traders are on edge ahead of several key events this week. The UN General Assembly's 81st annual general debate kicks off in New York, where President Donald Trump is scheduled to speak. Market participants are watching closely for any sideline meeting between Trump and Iran’s leader.

On Thursday, Trump will meet with China’s Xi Jinping in New York. The visit marks Xi’s first trip to the US in nearly three years, with topics likely including the Iran conflict, rare earth minerals, and AI. The convergence of geopolitical tensions and energy prices has created a cautious tone across trading desks.

These upcoming diplomatic encounters are seen as potential catalysts that could sway market direction in the days ahead.