European bonds join Treasury rally as lower oil prices ease inflation fears

Benchmark Treasury yields are trading near the midpoint of a months-long range as concerns that surging oil prices would trigger an inflation shock have largely faded. That reduces near-term upside pressure on yields and inflation expectations, supporting stability in fixed-income markets; renewed oil-price moves would remain the primary risk to watch.

Analysis

Benchmark Treasury yields are trading near the midpoint of a months-long range as concerns that surging oil prices would trigger an inflation shock have largely faded. That reduces near-term upside pressure on yields and inflation expectations, supporting stability in fixed-income markets; renewed oil-price moves would remain the primary risk to watch.