NewsHK
Against the backdrop of falling oil prices, Treasury yields declined during Asian trading hours, with Federal Reserve official John Williams's recent commentary adding a second directional pull.
The session brought two of the rate market's most closely watched inputs into alignment. Oil, inflation, and the curve The channel from crude oil into Treasury yields runs through inflation expectations.
Oil is one of the more immediate and widely tracked price signals in the economy, and when it falls, the argument for sustained upward pressure on yields weakens.
That logic showed up in the Asian session, where lower oil prices created room for the long end of the Treasury curve to ease before the US trading day had opened.
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