The 10-Year Yield and Oil Prices Move Higher
Spiking yields and oil prices make life interesting for Powell.
There is a 10-year Treasury auction coming up next Tuesday the 15th. Yields will likely move higher coming off of that auction, my assumption is that it will be weak.
WTI Crude is up to $77 today. Further upward pressure will be applied to the price of oil as the Israel vs. Hezbollah/Iran war escalates. Do a Twitter search to see the damage in southern Lebanon. You won’t find coverage in the NYT or WSJ.
If the Biden Administration allows itself to be pulled into the conflict, oil will move higher still.
In the real world, it is getting more expensive for companies to refinance debt, not less expensive. The cost of debt capital is moving higher.
The question is: “When will the equity markets notice rising yields and oil prices?”
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