US Treasuries extended their decline, with the 10-year yield rising six basis points to 4.09% as traders scaled back bets on Fed rate cuts. This shift followed a global bond rout where UK, French and Italian yields surged over 10 basis points at the European open. Energy supply concerns from the escalating Iran conflict, driving oil and gas prices higher, are central to investor anxiety.

Traders now anticipate only 43 basis points of Fed cuts this year versus 60 basis points on Friday, reflecting a sharp repricing. The ECB faces similar challenges, with its rate bias shifting toward hikes amid inflation risks. 4.09% and 43 basis points are critical figures highlighting the market's abrupt recalibration.