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

Benchmark Treasury yields are trading near the middle of their months-long range as fears of an inflation shock from surging oil prices fade. The easing oil-driven inflation concern has kept yields stable and reduces near-term upside risk to inflation breakevens and Fed-rate repricing.

Analysis

Benchmark Treasury yields are trading near the middle of their months-long range as fears of an inflation shock from surging oil prices fade. The easing oil-driven inflation concern has kept yields stable and reduces near-term upside risk to inflation breakevens and Fed-rate repricing.