European markets definitely got in on the peace deal action yesterday, but they didn't trade it nearly as aggressively as US markets. Why bring this up? There was a fairly obvious shift toward lower oil prices and bond yields overnight, and the most obvious suspect was simply the opening bell for European markets. While obvious, it wasn't too big. 10yr yields are hovering in a range that's 2-3bps lower than yesterday, and still above the lows seen at the beginning of the month.
Some Bond-Specific Weakness in The Afternoon
Some Bond-Specific Weakness in The Afternoon
Oil and Treasury yields were almost perfectly correlated for almost the entire week. Friday afternoon was an exception. Oil continued sideways to slightly lower whil…