Oil prices have a path of least resistance higher due to physical market tightening as US oil rig count remains low (around 425 vs. ~500 expected at these price levels) and supply shocks take time to feed through. Reserves are being run down and the spot price will be forced to roll up, meaning higher oil prices ahead.
As the dollar weakened, the pressure squeezed out into alternatives: other currencies strengthened sharply, and gold and bitcoin got bid again. This supports gold and bitcoin as beneficiaries of dollar weakness and contained yields.
As the dollar weakened, the pressure squeezed out into alternatives: other currencies strengthened sharply, and gold and bitcoin got bid again. This supports gold and bitcoin as beneficiaries of dollar weakness and contained yields.
The Treasury market is giving Bessent's effort a clear short-term win: the Bloomberg bond index for US Treasuries had its best day since February last year, off-the-run bonds tightened, and liquidity improved. Citigroup sees this as a top for yields, so there is near-term momentum supporting US Treasuries.