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Oil-driven inflation fears lift Treasury yields again
Gas prices have returned to multi-year highs, a backdrop that is pushing up yields and triggering renewed selling in early domestic trading.
Mortgage News Daily says Treasuries are underperforming EU bonds as oil prices rise again, pushing yields higher overnight and fueling additional selling in early domestic trading.
The outlet links the move to renewed inflation worries after a brief period of relative relief for bonds in June, when markets had been hopeful that the Iran war was ending or winding down.
It also cites ECB comments that have flagged potential rate-hike risks by the end of the year, adding to pressure on the bond market.
Mortgage News Daily points to 2-year Treasury yields as the clearest signal of what it describes as an ongoing, slow-motion deterioration that has been unfolding since March.