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10-year Treasury yields climb to highest since global financial crisis, Apple may back off iPhone production boost and Russia pressures cont [View in browser]( [Bloomberg]( 10-year Treasury yields climb to highest since global financial crisis, Apple may back off iPhone production boost and Russia pressures continue. Yields surge Treasury 10-year yields rose above 4% to the [highest level]( since the global financial crisis, spurred by speculation that Japan will intervene to strengthen the yen -- potentially funded by selling US debt securities.  An index of US sovereign securities extended its worst year since at least the 1970s after St. Louis Fed President James Bullard warned the central bank has to [keep raising interest rates]( to retain its credibility. Meanwhile, JPMorgan Asset Management said that longer-dated sovereign notes in most developed markets are starting to [look appealing]( given elevated yields. Apple production Apple [shares fell]( as much as 3.3% in premarket after a report said it's backing off plans to increase production of its new iPhones this year after an anticipated surge in demand failed to materialize. Instead, it'll aim to produce roughly the same level as the prior year and [in line]( with its original forecast this summer. China, the world’s biggest smartphone market, is in an economic slump that’s hit [its domestic]( mobile device makers and affected iPhone sales. Global demand has also been suppressed by surging inflation, recession fears and disruption from the war in Ukraine. Russia annexation Russian leaders [declared victory]( in a series of stage-managed, UN-condemned “referendums,” as the Kremlin moved to annex a large chunk of occupied Ukrainian territory. Severe damage to two gas pipelines from Russia [was “deliberate,”]( and the European Union will take more steps to bolster its energy security, the bloc’s foreign policy chief Josep Borrell said.  The growing exodus of Russians fleeing President Vladimir Putin’s [mobilization order]( is creating turmoil at the borders with neighboring states and stirring fears about potential instability. The EU  is considering adding [shipping restrictions]( to its oil sanctions as the bloc continues to discuss the introduction of a price cap on Russian oil, according to people familiar with the matter. Dollar record The dollar soared to [another record]( after the White House [talked down]( the prospect of weakening the currency. Major equity levels crumbled on Tuesday after a slew of hawkish Federal Reserve speakers stoked fears about rising interest rates and the economic outlook, although there may be some respite ahead as S&P 500 futures trade little changed as of 6:25 a.m. in New York. Meanwhile, natural gas prices in Europe surged after Russia said it may cut off supplies via Ukraine; a Bloomberg index of [commodity]( prices fell to the lowest level since January. Coming up... More central-bank speakers in store as yields surge. The Fed’s Mary Daly, Raphael Bostic, Charles Evans and ECB President Christine Lagarde speak at events today. US data include pending home sales at 10am, as well as MBA mortgage applications, the advance goods trade balance and wholesale inventories. The US sells 7-year notes. There’s also the weekly EIA US crude-inventory report. Cintas and Paychex report earnings. What we've been reading Here's what caught our eye over the past 24 hours. - Wall Street hires [WhatsApp cops](. - IMF tells UK to [rethink tax cuts.]( - Musk asks court to end [`Twitter Sitter’]( deal. - [Hurricane Ian]( spurs evacuations. - [Alzheimer’s]( progression slowed by drug in major trial. - Harris says US intends to [deepen Taiwan ties](. - What NASA’s crash into an [asteroid]( looks like. And finally, here’s what Joe’s interested in this morning There's a million things going on right now, but the biggest source of fascination has to be the sinking of UK assets, in the wake of the new government's "mini budget," which will widen the deficit at a time when conventional economics would suggest that it's time to constrain. There's plenty of talk about a pound crisis, or a gilt crisis or how the UK is now dependent on the "kindness of strangers" and so on. All that being said, it's worth noting that the big story is still about the strength of the dollar. Look at a chart of the expanded major currencies over the last month and every one of them is in the red against the dollar (except the ruble, which is its own story and has its own trading limitations). The British pound is near the bottom of the performers, not surprisingly. But note it's not that far from the New Zealand dollar, and also a little bit better than the Norwegian krone as well as the Chilean peso. This isn't to absolve UK policymakers, per se, but it's helpful to zoom out a bit and recognize that a big chunk of the GBPUSD fall is still about the USD part, as opposed to the GBP part. Follow Bloomberg's Joe Weisenthal on Twitter [@TheStalwart]( Follow Us Like getting this newsletter? [Subscribe to Bloomberg.com]( for unlimited access to trusted, data-driven journalism and subscriber-only insights. 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