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Falling oil prices are no longer enough to bring down borrowing costs in the world’s most important bond market

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Falling oil prices are no longer enough to bring down borrowing costs in the world’s most important bond market
Photo / Coverage: MarketWatch Top StoriesCredit: Isabel Wang
EXECUTIVE SUMMARY

The tight trading relationship between oil prices and Treasury yields has broken down. It’s a sign that inflation concerns are extending beyond the energy shock.

Key Takeaways

  • Falling oil prices are no longer enough to bring down borrowing costs in the world’s most important bond market.
  • The tight trading relationship between oil prices and Treasury yields has broken down.
  • It’s a sign that inflation concerns are extending beyond the energy shock.

The tight trading relationship between oil prices and Treasury yields has broken down. It’s a sign that inflation concerns are extending beyond the energy shock.

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