12 Dec 2014
Oil continues to fall, Yields show little change – DB
FXStreet (Barcelona) - The Deutsche Bank Team notes that oil remained soft with WTI falling below $60/bbl for the first time since July 2009, with the US 10yr Treasury yields showing little change at 2.16%.
Key Quotes
“For now the ongoing weakness in Oil continues to dominate the headlines. Indeed yesterday saw WTI and Brent fall by 1.6% and 0.9% with the former closing below $60/bbl for the first time since July 2009. The S&P 500 got off to a pretty strong start to the day having risen as much as 1.4% helped by a decent retail sales report. The market took a turn in the afternoon as the sell-off in Oil gathered momentum although the index (+0.45%) still managed to post its first up day this week. The energy sector was unsurprisingly the laggard although having closed the day unchanged it was probably one of the better outcomes that one could have hoped for.”
“Elsewhere the 10yr benchmark Treasury yield was little changed at 2.16% but the curve flattened further led by strength by long bonds. The 30yr fell by 2.5bp to close at around 2.81% a level which is currently lower than the pre-Taper tantrum lows that we saw in May last year. Demand for the 30yr auction yesterday was strong with a bid/cover ratio (2.76x) higher than the previous sale. Credit underperformed on a relative basis with the CDX IG about half a basis point wider and the CDX HY index around four-tenths of a point lower.”
Key Quotes
“For now the ongoing weakness in Oil continues to dominate the headlines. Indeed yesterday saw WTI and Brent fall by 1.6% and 0.9% with the former closing below $60/bbl for the first time since July 2009. The S&P 500 got off to a pretty strong start to the day having risen as much as 1.4% helped by a decent retail sales report. The market took a turn in the afternoon as the sell-off in Oil gathered momentum although the index (+0.45%) still managed to post its first up day this week. The energy sector was unsurprisingly the laggard although having closed the day unchanged it was probably one of the better outcomes that one could have hoped for.”
“Elsewhere the 10yr benchmark Treasury yield was little changed at 2.16% but the curve flattened further led by strength by long bonds. The 30yr fell by 2.5bp to close at around 2.81% a level which is currently lower than the pre-Taper tantrum lows that we saw in May last year. Demand for the 30yr auction yesterday was strong with a bid/cover ratio (2.76x) higher than the previous sale. Credit underperformed on a relative basis with the CDX IG about half a basis point wider and the CDX HY index around four-tenths of a point lower.”