According to Jin10, DHF Capital S.A. economist Bas Kooijman said in a report that oil price movements have become a key driver of U.S. Treasury yields and market expectations for the Federal Reserve’s rate path. He said the outlook could shift with changes in Middle East tensions and the direction of oil prices. In his view, a further and sustained drop in oil prices could add to disinflation pressure and dampen expectations for tighter monetary policy. If tensions flare up again, that could revive inflation concerns and push Treasury yields higher. The remarks center on how energy markets are feeding into inflation expectations and interest-rate pricing, with geopolitical developments in the Middle East seen as an important variable for what comes next.
ChainCatcher reported, citing Jin10, that DHF Capital S.A. economist Bas Kooijman said in a report that oil price movements have become a key driver of U.S. Treasury yields and market expectations for the Federal Reserve’s rate path.
Kooijman said the outlook could change as developments in the Middle East and oil prices evolve. A further sustained decline in oil prices could intensify disinflation pressure and restrain expectations for additional monetary tightening, while a renewed escalation in tensions could bring back inflation concerns and lift Treasury yields.
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