15 Dec 2015
Oil drops, treasury yields follow
FXStreet (Mumbai) - Oil prices are down once again as the concerns of excess supply persists, dragging the treasury yields lower as well.
At the time of writing, the WTI futures were down 0.43% or 16 cents at USD 36.16/barrel. Brent futures were down 18 cents at USD 37.74/barrel. Meanwhile, the benchmark 10-yr yield was down almost 2bps at 2.209%. The 2-yr yield, which mimics rate hike expectations, fell 1.2bps to 0.944%.
Oil traders remain bearish on OPEC’s decision to push up the output ceiling and prospects of increase in Iranian supplies once sanctions are lifted.
The treasury yields have been chasing oil prices heading into the US Fed rate decision due tomorrow, since falling oil prices pull down short-term inflation expectations.
At the time of writing, the WTI futures were down 0.43% or 16 cents at USD 36.16/barrel. Brent futures were down 18 cents at USD 37.74/barrel. Meanwhile, the benchmark 10-yr yield was down almost 2bps at 2.209%. The 2-yr yield, which mimics rate hike expectations, fell 1.2bps to 0.944%.
Oil traders remain bearish on OPEC’s decision to push up the output ceiling and prospects of increase in Iranian supplies once sanctions are lifted.
The treasury yields have been chasing oil prices heading into the US Fed rate decision due tomorrow, since falling oil prices pull down short-term inflation expectations.