Top Overnight News

The US 30-year yield climbed to its highest level since 2004 as comments from Iran further stoked oil-driven inflation fears and fiscal concerns. Equity futures fell. BBG

Brent surged to around $106 after a military adviser to Iran’s supreme leader said Tehran may expand the war to the Indian Ocean if the US or Israel attacks again, further undercutting hopes of a deal. BBG

Saudi Arabia has sold almost 100 million barrels of oil to Asian buyers since the middle of last week, helping to avert a looming supply crunch in the region. The crude will be sent via the Strait of Hormuz to buyers including Chinese state-run and independent refiners, as well as processors in India, Japan and South Korea. BBG

President Donald Trump’s strong rapport with Xi Jinping is set to be on display in Washington this week as the Chinese leader makes his first U.S. state visit in more than a decade. But below the surface-level pageantry at the White House, little is likely to be resolved as the world’s two biggest economies continue to spar over trade, Taiwan, AI and more. NBC

US Treasury Secretary Scott Bessent announced on Wednesday that Washington and Beijing have agreed to extend the trade agreement reached in South Korea for just two months, as Chinese President Xi Jinping arrives in Washington for a state visit. SCMP

Large cargo ships have recently paid up to $5 million to pass through the Panama Canal, as the global shipping industry reacts to trade disruptions from the Iran war and extreme weather patterns in the Western Hemisphere. WSJ

The AI build-out is on track to become the biggest economic bet in U.S. history, dwarfing the investments made to fund other huge U.S. infrastructure projects such as the railroads, the highway system and the plumbing for the internet. WSJ

AI firms are rushing to discount their products as some enterprises express caution about paying full price for all the new tools. The Information

Sellers are feeling the strain of US mortgage rates around 7%. Nearly one in five homes for sale had a price cut in August, while 45% of sales involved a seller concession, according to Redfin data. BBG

Mark Carney said he had seriously considered the “extreme tail risk” of a US invasion when asked about the possibility in a NYT interview. BBG

A US judge issued an order blocking the Trump administration’s White House ban on CNN, MS NOW and Politico.

US Senate Majority Leader Thune believes President Trump is open to implementing AI guardrails despite his public defiance on the issue: Axios.

An industry group representing US tech companies is reportedly pushing the US administration to withdraw its proposal to charge for H-1B visas: WSJ.

BofA Total Card Spending (w/e Sep 19th) +6.9% Y/Y (prev. +5.8% W/W); surging gas prices have opened up a gap in ex-gas spending between higher and lower income households.