Magazine article American Banker

Jump in Oil Prices Causes Bond Yields to Edge Up

Magazine article American Banker

Jump in Oil Prices Causes Bond Yields to Edge Up

Article excerpt

A rise in oil prices unsettled the government securities market on Monday.

In late trading, the yield on the 30-year Treasury bond was at 6.54%, up from 6.53% on Friday. Ten-year notes rose 1 basis point in yield to 5.69%. Two-year notes increased 4 basis points to 3.99%.

The Organization of Petroleum Exporting Countries said it will hold an emergency meeting at the end of this month. The cartel then is expected to increase oil prices.

Below $16 a Barrel

Until that announcement, the price of oil had fallen below $16 -- the lowest level since the Persian Gulf War -- in anticipation that the United Nations will temporarily lift the embargo on Iraqi oil sales.

On Monday, the price of oil surged to $17.36 a barrel.

An increase in commodity prices also fed the selloff in the Treasury market.

The Commodity Research Bureau index, measuring 21 futures prices, rose 2.83 points, or 1.3%, to 218.01.

Soybean Prices Rise

The rise was attributed mainly to higher soybean prices, spurred by flooding in the Midwest. …

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