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2026-11-02 19:10:25
[Oil Prices Plunge, US and European Bond Yields Fall in Tandem] ⑴ Easing diplomatic tensions in the Middle East drove a sharp drop in oil prices, with Brent crude falling 4.3% to $107.90 in a single day. Cooling inflation expectations led to a decline in global bond yields. ⑵ The 10-year US Treasury yield fell slightly by 1 basis point to 4.91%. The market lowered its expectations for future Fed rate hikes, coupled with concerns about AI investment returns, leading to increased buying of US Treasuries. ⑶ European government bonds rallied across the board. The yield on 10-year UK government bonds fell to a six-week low, while yields on long-term German and French bonds also declined. The downgrade of France's rating outlook did not negatively impact the bond market. ⑷ This week, the market is focused on the US midterm elections, the quarterly US Treasury bond issuance plan, and non-farm payroll data. The market expects the US to reduce the scale of long-term bond issuance.
