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Oil’s drop tempers bond yield recovery, with data light

Bond-market activity is steady, with expectations tied to how oil moves back toward June levels as upcoming economic data stays light.

Reported · Written up by our desk · Economy

Mortgage News Daily said the bond market opened with no sign of unusual trading patterns that drove earlier pre-market weakness, pointing instead to a simple shift in oil prices.

The outlet noted that oil has erased about half of its prior session rise, while bond yields are trying to recoup the move but have not recovered as much as oil.

According to Mortgage News Daily, the close relationship between oil and bonds remains intact, supporting the view that bonds could recover better if oil falls back toward June levels.

With economic data described as very light, the outlet said volatility is most likely to come from major news headlines or end-of-week positioning rather than scheduled releases.

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