- Treasury yields fell across the curve, with the 10-year down 3bp to 4.967%, the 2-year down 1bp to 4.729%, and the 30-year down 3bp to 5.306%.
- European bond yields also declined, with German 10-year bund and UK 10-year gilts each down 5 basis points.
- Falling crude oil prices buoyed sentiment and lifted stock markets despite continued Middle East hostilities and pressure on Tehran over the Strait of Hormuz.
- Investors are digesting last week's quarter-point Fed rate hike and assessing whether further increases will follow before year-end, while the ECB also hiked and the BoE held.
- Key data this week include S&P Global PMI figures on Wednesday and Initial Jobless Claims on Thursday, with speeches from Fed officials John Williams and Tom Barkin.
Quotes
“Treasury yields were lower early Monday, tracking a global easing of government borrowing costs amid falling oil prices.”
“Sentiment was buoyed by a fall in crude oil prices, sending stock markets higher, despite continued hostilities in the Middle East.”