Treasury yields chase oil prices

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Dec 14, 2015.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    FXStreet (Mumbai) - The treasury yields in the US have been chasing oil prices since the European session as the sharp moves in the oil prices influence the inflation expectations.

    10-year yield completes a lap

    The 10-yr treasury yield was up almost 3 basis points (bps) in Europe, but quickly erased gains after oil prices extended losses to trade 3% lower. However, the oil prices recovered part of their losses, which saw the yield rise to trade at 2.174%; up 3bps again.

    Meanwhile, the 2-yr yield, which is more sensitive to the short-term interest expectations and inflation expectations, witnessed similar moves and now trades 4bps higher at 0.935%.

    The yields may harden as we head closer to Wednesday’s Fed rate decision, but weaker oil prices may play spoil sport.
    For more information, read our latest forex news.

Share This Page

free forex signals