Biggest Oil Spike Yet Leaves No Doubts
Since the outbreak of the military operation in Iran, there have been varying levels of spillover from rising oil prices to the bond market. There have been notable pockets of time where the correlation broke down, but when viewed in less granular detail, oil prices and bond yields have moved higher together over the past week. Now this morning, there's a new mega-surge in oil (presumably due to Iran's leadership announcement and its implications for more military escalation) and the correlation is undeniable when viewed over a short time period. Today's first chart shows there's no question of that short-term correlation.
The second chart shows that the correlation is definitely not proportional (the scaling is set to the same proportions used last week in order to illustrate the size of the jump in oil).
Categories
Recent Posts

Bonds Hold Ground Despite Some Healing in Tech

Equity, Reverse, Non-Agency, UAD 3.6 Products; What's Ahead in Capital Markets?

Slightly Stronger Start, But Generally Sideways and "Waiting"

Slightly Weaker, But Much Stronger on The Week

Modest Uptick in Rates But Still Near 1-Month Lows

Mortgage Applications Aren't Ready to Rebound Just Yet

Building Permits Hold Steady Despite Slide in Housing Starts

Builder Confidence Hits Lowest Level Since 2012

Company Valuation, Equity, Friction Audit, Vendor Mgt., Borrower Communication Tools; Capital Markets

Et Tu, S&P PMI?
GET MORE INFORMATION


