U.S. Treasurys Dip as Investors Watch for Fed Hints

Long-dated U.S. Treasurys yields fell on Monday as oil prices dropped to five-year lows, denting inflation expectations and raising the appeal of long-maturity bonds over shorter-dated issues. An early rebound in oil prices faded after OPEC exporters said they would not cut production despite worries about a supply glut.

That renewed selling in stocks and buying in longer-dated Treasurys, analysts said. “We are again seeing a pullback in energy prices. That’s weighed on stocks and put a bid back in Treasurys,” said Ian Lyngen, senior government bond strategist at CRT Capital Group in Stamford, Connecticut.

Concerns about weakening growth and inflation overseas, despite signs of a resilient U.S. economy, have also underpinned the appetite for longer-dated Treasurys, whose yields fell to two-month lows earlier on Monday.

CNBC

Content is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Business Information & Services, Inc. or any of its affiliates, subsidiaries, officers or directors. If you would like to reproduce or redistribute any of the content found on MarketPulse, an award winning forex, commodities and global indices analysis and news site service produced by OANDA Business Information & Services, Inc., please access the RSS feed or contact us at info@marketpulse.com. Visit https://www.marketpulse.com/ to find out more about the beat of the global markets. © 2023 OANDA Business Information & Services Inc.