Yields keep rising, Novo's tough week, why cat product sales are surging and more in Morning Squawk

• The 10-year Treasury yield reached its highest level, with the sharp upswing prompting analysts to warn that 'something is going to break' in markets
• Average 30-year fixed mortgage rates increased yesterday, with experts warning that rising yields will lead to higher borrowing costs across the board
• Despite Treasury market pressure, the S&P 500 is on track for its first winning week in three, while the Nasdaq faces its fourth consecutive weekly loss

Market Summary: Rising Yields, Pharma Competition, and Pet Industry Trends

Treasury Yields Surge

Treasury yields dominated market attention this week, with the 10-year yield hitting multi-year highs and the 30-year experiencing its largest single-day jump in over a year. The 30-year fixed mortgage rate climbed accordingly. Analysts warn that rapidly rising rates could cause market disruptions, while the increases expose tensions between Federal Reserve Chairman Kevin Warsh and Treasury Secretary Scott Bessent regarding persistent inflation and growing U.S. debt. Despite Treasury market pressure, major indices showed mixed performance, with some posting potential weekly gains.

Geopolitical Developments

The Senate rejected a resolution to end the Iran war, though Iranian Foreign Minister Abbas Araghchi indicated Tehran could reach an agreement within seven days under certain conditions. Energy prices remain a concern ahead of midterm elections, with major business groups cautioning President Trump against potential policy moves that could impact markets.

Novo Nordisk vs. Eli Lilly

Novo Nordisk faced investor skepticism this week despite outlining growth plans beyond weight loss drugs. Competitor Eli Lilly is gaining ground, with CEO Dave Ricks reporting that one-third of new GLP-1 patients now use Lilly's Foundayo pill, challenging Novo's early market leadership with Wegovy. U.S.-listed Novo shares declined during the week.

Meta's AI Push

Meta rallied after unveiling its Muse personal agent app and charm device, signaling efforts to compete in consumer AI and reduce reliance on Apple and Google for distribution. Wall Street rewarded the company's AI strategy despite limited product specifics.

Pet Industry Boom

Cat product sales are surging, benefiting retailers like Chewy, Petco, and PetSmart. An estimated 53 million U.S. households owned cats in 2025, driven by lower care costs and smaller space requirements compared to dogs.