2% in Sight

2% in sight. Treasurys and swap rates traded in a narrow range once again, but climbed higher for the third straight session. This time, the short-end of the curve also participated, 2-year yields climbing by 5 bps while 10-year yields ended ever closer to 2% at 1.96%. US equities also climbed higher, the DJIA gaining 1% on the day while the tech-heavy Nasdaq Composite rose 1.28%.

Oil eyeing $100 per barrel. As the 10-year yield has its sights on 2.0%, oil prices per barrel are nearing $100, a mark not seen since the summer of 2014. Many factors have been at play in recent months allowing oil to rally including targeted attacks within the UAE, the Russia-Ukraine stand-off, and historical global demand. Analysts expect the increasing oil prices to put upward pressure on inflation as rising energy costs on producers will eventually flow to the end-consumer. Oil did fall 2.0% today on the news that the U.S. and Iran have resumed nuclear agreement talks.