Oil Rules Rates

The rates market is struggling to maintain breakouts, with the 10-year and 30-year US Treasury yields retracing to support levels as they increasingly trade in lockstep with crude oil prices.

Key Takeaways

• 1.The US rates market is experiencing failed breakouts, with yields consistently reversing back to key support levels.
• 2.Bond yields are currently trading as a derivative of crude oil, moving in close correlation with oil price action.
• 3.Bond volatility (MOVE) and oil volatility (OVX) are highly correlated, tracking each other nearly tick for tick.

Table of Contents

• The 10 year
• The 30 year
• The oil connection
• Bond vol
• Oil and bond volatility

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