Oil Price Drop Supports Treasuries
The decline in crude oil prices is supporting T-note prices.
Too little corroboration in the last 3 days to call a trend (23 articles). Watching for it to gain traction.
Mainstream financial press is carrying this — attention has broadened beyond specialist outlets.
"T-notes are moving higher today after US weekly jobless claims unexpectedly rose to a 4-month high and May producer prices ex-food and energy rose less than expected, dovish factors for Fed policy."
"T-notes moved higher Thursday on Fed-friendly economic news. Weekly jobless claims rose more than expected, Apr core capital goods orders unexpectedly declined, Q1 GDP was revised lower, and the Apr core PCE price index, the Fed's preferred inflation gauge, rose as expected."
"Today’s -2% fall in WTI crude oil prices has reduced inflation expectations and is bullish for T-note prices."
"T-note prices are moving higher today, recovering some of this week’s sell-off, as a -3% decline in WTI crude oil prices weakens inflation expectations, a supportive factor for T-notes."
"June 10-year T-notes (ZNM6) today are up by +6 ticks. The 10-year T-note yield is down -2.1 bp to 4.417%. Jun T-notes have support today from falling crude prices as WTI crude oil is down more than -4%, easing inflation expectations."
"The fall in oil prices also helped Treasury yields ease in the bond market."
"In the bond market, Treasury yields eased sharply as falling oil prices took pressure off inflation. The yield on the 10-year Treasury dropped to 4.24% from 4.32% late Thursday."
"With less threat of high inflation hurting the economy, a sustained drop in oil prices could convince the Federal Reserve to resume its cuts to interest rates to help the economy."
"In the bond market, Treasury yields eased sharply as falling oil prices took pressure off inflation."
"The decline in crude oil prices has also improved the outlook for US Federal Reserve rate cuts and weighed on the US dollar, which is on track for a third consecutive weekly loss."