Headlines:USD/JPY falls below 158.00 as Takaichi says Trump flagged weak yen pressureCrude oil falls on reports of potential phased US-Iran deal that would reopen the Strait of HormuzTrump-Xi summit extends the trade truce but leaves the biggest market questions unresolvedHow have interest rate expectations changed after this week's events?Fed's Williams: Persistent supply shocks are making the inflation fight harderGerman consumer climate darkens ahead of October as higher energy costs biteEthereum struggles amid macro headwinds, but renewed US-Iran hopes limit the downsideMonth-end FX flows point to yen and pound selling, euro buying – BofAMarkets:WTI crude oil down 2.4% to $92.36JPY leads, CHF lags on the day10-year Treasury yields up 0.9 bps to 5.17%Gold up 0.6% to $4,305European indices higher; S&P 500 futures +0.4%Bitcoin up 0.5% to $84,725Despite the continued breakout in Treasury yields this week, broader markets are keeping the calm in European trading today as we approach the final stretch of the week.Lower oil prices are perhaps a reason why investors are able to find a breather, taking away some of the more immediate inflation concerns - for now at least. WTI crude oil is down 2.4% to $92.36 after talks of a phased US-Iran deal that could lead to a reopening of the Strait of Hormuz. In the meantime, ship traffic data remains subdued with just single-digit crossings through the strait over the past 24 hours. But for now, the hopeful optimism is at least helping to pin down oil prices.In the bond market, 10-year Treasury yields continue to look to the upside in nudging to 5.17%. That is off the high yesterday of 5.22% but the mood continues to underscore the narrative that the pressure is still very much on. The selloff accelerated in US trading yesterday and that will remain fresh on investors' minds as we look towards the upcoming session later.The Japanese yen was also a notable mover on the session with USD/JPY dropping back below 158.00 to 157.60 levels now. Japan finance minister Katayama kicked things off earlier in the day in saying that the principles behind July’s joint intervention remain in place. And then, we had Japan prime minister Takaichi reveal that US president Trump had told her that a weaker yen is putting pressure on US trade.Those comments appear to be a signal to traders to not push yen weakness too far, and we're seeing some USD/JPY selling as a result.The dollar is also slightly weaker on the day, with the better risk mood adding to the modest improvement in risk appetite. EUR/USD is up 0.2% to be back at 1.1400 and AUD/USD up 0.3% to 0.7030.After the struggles yesterday, European stocks are faring better today in eyeing a bounce to close out the week. Meanwhile, US futures are also pointing to a more cheery open as tech shares lead the bounce for now.All that being said, the better risk profile we're seeing can quickly change as sentiment still feels rather fragile at this stage. The bond market is still the key caveat and fresh selling pressures could easily bite at the risk mood again before we close out the week.The key question into US trading is whether 10-year yields can stay below yesterday's 5.22% high. A renewed push through there would test just how comfortable equities really are with Treasury yields well over the 5% threshold. This article was written by Justin Low at investinglive.com.