Walls’ Street: Bond yields down, oil prices up
In one of the most volatile weeks on the market since the global financial crisis, bond yields have fallen while oil prices have risen. With special feature audio.
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In one of the most volatile weeks on the market since the global financial crisis, bond yields have fallen while oil prices have risen.
Last Friday’s Brexit vote sparked a sterling sell-off and panic in the markets.
Bond yields from Australia, Japan, the US and New Zealand all fell to record low levels in the following days.
New Zealand’s 10-year bond yield fell to 2.30% – dropping 18 basis points after Brexit, while the Japanese 10-year bond fell even further into negative territory.
Yields are expected to stay low as markets calm down.
Meanwhile, oil prices are rallying.
Crude oil prices jumped 3% earlier in the week after the US government reported a larger-than-expected reduction in crude oil inventories.
The potential for an oil workers’ strike in Norway and a crisis in Venezuela's energy sector also added support to higher prices for crude oil futures contracts.
In the Middle East there are signs oil production may be beginning to slow too.
Saudi Arabia's new oil minister Khalid Al-Falih told media Opec is preparing to reassert a degree of control over the market after two years of letting prices fall.
“We are out of it. The oversupply has disappeared. We just have to carry the overhang of inventory for a while until the system works it out,” he told the Houston Chronicle.
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Thu, 30 Jun 2016
Thu, 30 Jun 2016
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Walls’ Street: Bond yields down, oil prices up
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