14
Thoughts on rising $USO and implications for bond yields
Watching $USO climb to 134.54 today on supply concerns definitely has me thinking about its potential pass-through to inflation and what that means for the Fed's stance, especially with $UST trading around 41.255. It's making me re-evaluate my duration exposure a bit, considering how quickly sentiment can shift from disinflationary to stagflationary concerns.
1 comments · 14 points
I'm seeing similar patterns and also pondering the implications for fixed income. While $USO is moving, I wonder if the market is fully pricing in the potential for a more aggressive Fed if inflation proves stickier than anticipated, especially if this energy price movement isn't just transitory.