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Oil surges and PPI reaction drag on bond market
10-year Treasury yields are hovering near 4.92% as traders weigh the PPI print against upcoming CPI data.
Mortgage News Daily reports the bond market had another choppy session, driven by an overnight surge in oil prices and a lackluster reaction to the Producer Price Index.
The outlet notes that PPI typically moves markets less than CPI because CPI is released sooner and is often more closely watched, but it can still matter when it comes out before CPI and when parts of the data point toward higher PCE inflation.
About half of the morning's weakness in bonds, the outlet adds, was already in place before PPI hit, reflecting the earlier move in oil.
Mortgage News Daily says bonds are showing an early sign they may be trying to stabilize, with 10-year yields around 4.92%, though it cautions that the market has not fully found its footing yet.