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What Falling Oil Means for 10-Year Treasury Yields
In this market commentary, Jim Iuorio of TJM Institutional Services breaks down the recent fluctuations in the bond market. Before the conflict, 10-year yields sat below four percent, but quickly surged to a high of 4.67 percent by late May. This aggressive move higher was largely driven by fears that spiking oil prices would permanently embed stubborn inflation, alongside growing anxiety over the massive wave of new bonds the government would need to issue to finance geopolitical responses. However, the narrative has recently shifted. Yields have retreated closer to 4.43 percent, catalyzed by a sharp drop in WTI ...