Here’s an interesting perspective on oil prices and US bond yields from Goldman Sachs’ technical analysts:
The first thing to notice is that the low in Brent formed on Jan. 13th approximately two week before the low in 30- year yields (on Jan. 30th). Although rates have moved sharply higher since then, the directional link between the two markets remains very relevant.
In conclusion, it seems it will be important to watch both for confirmation of each other’s signals. If 30-year yields are showing signs of a turn, would expect Crude to be showing a similar setup (perhaps even at a lead).
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