Three things moving markets this morning:
1. Oil down another 3% — taking pressure off bond yields. US 10-year Treasury yield dropped 3 bps. When energy calms down, inflation fears ease, yields follow.
2. Druckenmiller went after the Treasury in a WSJ op-ed for intervening in the bond market. Worth reading if you care about how policy distorts price signals.
3. China fired back after the US threatened secondary sanctions on anyone helping Iran move money or goods. Escalation watch.
Oil, bonds, and geopolitics — the usual Monday morning cocktail.
1. Oil down another 3% — taking pressure off bond yields. US 10-year Treasury yield dropped 3 bps. When energy calms down, inflation fears ease, yields follow.
2. Druckenmiller went after the Treasury in a WSJ op-ed for intervening in the bond market. Worth reading if you care about how policy distorts price signals.
3. China fired back after the US threatened secondary sanctions on anyone helping Iran move money or goods. Escalation watch.
Oil, bonds, and geopolitics — the usual Monday morning cocktail.
