On Thursday, Brent crude briefly topped $97 per barrel for the first time since late July, while WTI futures rose more than 1% above $92. Yet U.S. Treasury yields declined: the 10-year note yield fell 6 basis points to around 4.74%, and the 30-year bond yield slipped 4 basis points to 5.221%. This divergence is explained by two factors: comments from Fed Governor Christopher Waller signaling support for keeping rates unchanged, and a sharp rally in the Japanese yen, which climbed to 155.68 against the dollar. Japan, the largest foreign holder of U.S. Treasurys at roughly $1.1 trillion, could alter its buying strategy if its currency continues to strengthen.
Source: Read the original article
