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Bonds show safe-haven demand as fuel and yields decouple

S&P futures repeatedly hit resistance near 7,630, signaling investors are prioritizing capital preservation over buying dips.

Reported · Written up by our desk · Economy

Mortgage News Daily reports that in a month where bond movement has often tracked fuel prices amid renewed Iran war concerns, the correlation broke again in the latest session.

Fuel prices surged between 4 a.m. and 9 a.m., but yields did not follow, suggesting other drivers are at play.

The outlet attributes the divergence in part to brisk selling in equities, with S&P futures unable to clear resistance around 7,630 for multiple attempts, including a failure on Thursday.

With tech-focused stocks set to open weaker after underperforming their recent consolidation pattern, Mortgage News Daily says investors are leaning toward short-term capital preservation, and that has left bonds picking up some of the demand normally associated with the risk-off shift.

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