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[Bloomberg]( White House reins in North Korea hawks, Treasury yields continue their grind higher, and Brent crude hits $80. Not Libya The Trump administration is [distancing itself]( from National Security Adviser John Bolton’s hard-line stance on North Korea. Press Secretary Sarah Huckabee Sanders told reporters she was “not aware” of plans to use the so-called [Libya model](, which would force Kim Jong Un’s regime to quickly abandon its nuclear program. While Bolton might be on the diplomatic naughty step, there has been a reprieve for President Donald Trump’s trade adviser [Peter Navarro](, who will now take part after all in talks with China when they begin in Washington later today. Treasury move The yield on the 10-year Treasury was at [3.106 percent]( by 5:45 a.m. Eastern Time this morning as the move through [multi-year highs]( continues. The 30-year yield hit the [highest level since 2015]( as the bond selloff spread to the most-resilient part of the market. Incoming New York Fed President John Williams said yesterday that it is almost time for the Federal Reserve to [stop holding the market’s hand](, while James Bullard, president of the Federal Reserve Bank of St. Louis, warned overly aggressive tightening could lead to [yield-curve inversion](. $80 oil Brent crude for July settlement hit [$80.18]( in London trading this morning, for the first time since 2014, as U.S. crude inventories fell and traders continued to brace for the impact of renewed Iran sanctions. A barrel of West Texas Intermediate for July delivery was trading at $72.20 by 5:45 a.m. Goldman Sachs Group Inc. has warned that money managers reducing their bullish bets on crude are engaging in a “[dangerous](” strategy. Markets mixed Overnight, the MSCI Asia Pacific Index slipped 0.2 percent, while Japan’s Topix index closed 0.5 percent higher as the yen held recent losses against the dollar. In Europe, the Stoxx 600 Index was 0.2 percent higher at 5:45 a.m. with oil producers among the best performers as crude prices continued to rise. S&P 500 futures pointed to a [slight drop at the open]( and gold was lower. Going their own way European Union leaders [presented a united front]( against Trump’s moves on trade and his plans to scupper the Iran nuclear deal. EU President Donald Tusk said the bloc must learn to cope with what he called U.S. “[capricious assertiveness](,” adding that common challenges posed by the White House are bringing member states closer together. Within the union, talks in Italy on the formation of a new government [continue to drag on](. What we've been reading This is what's caught our eye over the last 24 hours - Harvard’s Reinhart says emerging markets are [in a tougher spot]( than during the ‘08 crisis. - Morgan Stanley says a [shipping revolution]( has oil headed to $90. - Summer of ‘69 has lessons for investors and they are [not bullish](. - Investment banks sell a complex way to [hedge stock volatility](. - SEC tries to [scam ICO investors]( to show them how easy it is. - Wall Street needs a [new Tom Wolfe](. - Someone, somewhere, is back making long-banned, [ozone destroying CFCs](. And finally, here’s what Joe’s interested in this morning What is the impact of higher interest rates on the stock market? The answer lies somewhere between "it depends" and "it's complicated" as higher rates themselves don't tell you much about whether financial conditions are really tightening or not. The equivalent discussion happens in housing, and again the same applies. The homebuilding supply store [Home Depot reported earnings earlier this week](, and on the conference call its CFO Carol Tomé was asked about the impact of rising rates on the business. Her answer was basically that it makes more sense to look at the overall housing affordability index -- which combines mortgage rates, incomes and the cost of a typical home -- and that this gauge is still in far better shape than it was pre-crisis (although homes are definitely not as cheap as they were a few years ago). One other interesting comment from the CFO cited a [Harvard study]( on the long-term decline in mobility rates (people are moving less) and how this is bullish for the home remodeling business, though of course Home Depot stock has done amazingly well in recent years, so maybe everyone knows that part already. Like Bloomberg's Five Things? 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