Streetwise: Bond Traders are Paying Too Much Attention to Oil Prices

Dow Jones07:01

The relationship between oil and bond yields, and on to stock prices, is now well established. Oil up, bond yields up, stocks down-with the day-to-day trading relationship between 10-year yields and oil futures this month reaching its tightest on record.

This week followed the pattern pretty well. On Monday and Tuesday, bond yields fell a little as oil prices retreated; on Wednesday yields soared and oil rose; and on Thursday both rose again.

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