Monday, April 5, 2021

Oil even and yields down, dollar stable

 We had two basis points to spare before rate cycle. Saved by the jobs report. Good enough for FX insurance. What happens over night will be fun.  Folks may be stocked up on oil with the Saudi increments. 

Maybe we dodged a bullet?  Nah. When oil is the monetary standard, nations build vaults, oil storage. The oil pipeline is getting better at the contango. Soon, it is soon oik purchase time and the yields will take a jump closer to two points, buyers withdrawing funds and dollar up. Congress takes a breather to digest the mini shock. More talk of more taxes, send us the checks.

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