BBG - A renewed episode of bond volatility left traders reluctant to make riskier bets, with stocks wavering on worries that elevated oil prices will fuel inflation and force the Federal Reserve to lift rates.

As the selloff in bonds deepened, 30-year yields hit the highest since 2004. The yield on 10-year Treasuries advanced 8 bps to 5.20%. The Treasury’s expanded buyback operation failed to live up to expectations. While the S&P 500 and Nasdaq 100 were little changed, most of its firms fell. Brent crude settled near $107 after briefly paring its rally on news reports that the US and Iran are exploring a phased deal to reopen the Strait of Hormuz. WTI crude rose 3.4%.

The Bloomberg Dollar Spot Index rose 0.3%. Spot gold fell 0.4%. Bitcoin rose 0.2%.

Investors are demanding greater compensation to hold bonds as concerns about persistent inflation, government spending and surging corporate borrowing to finance the artificial-intelligence buildout intensify. Against this backdrop, money markets now fully reflect three Fed hikes over the next year.

Meantime, President Donald Trump and Chinese leader Xi Jinping addressed their intense competition over AI on Thursday during a summit. Hours earlier, the US announced an agreement to extend its trade truce with China by around two months to Jan. 10.

Oracle Corp. is moving to shield itself from racking up expenses on a massive data center being built in New Mexico, adding a fresh wrinkle to a project beset by opposition and regulatory setbacks.

The technology giant sent the project’s developer, a unit of Blue Owl Capital Inc., a notice citing force majeure, according to people familiar with the situation. Rather than trying to walk away as the site’s main tenant, Oracle is attempting to put off payments should the data center dubbed Project Jupiter get derailed and fail to come online in 2028 as planned, the people said, asking not to be identified discussing private matters.

Morgan Stanley raced to contain the damage from a leaked deal list as clients sought explanations and at least two regulators began assessing the potential fallout.

The leak has gripped Asia’s investment banking industry this week after one of Morgan Stanley’s top bankers accidentally sent an email to some clients containing a list of more than 100 deals the Wall Street firm was working on and monitoring.

Morgan Stanley held urgent meetings with some private equity firms to apologize and assure executives the bank would work to mitigate the fallout, people familiar with the matter said, asking not to be named discussing private information.