Bonds Slip as Oil Rallies

Treasury bond prices are poised to open slightly lower this morning as crude oil prices have rallied by almost $3/barrel to around $23. Overnight, equity markets around the world have rallied on the news that more economies are starting to relax various degrees of pandemic mitigation efforts. The Treasury’s Ten-Year is off about a quarter-point and that has pushed its yield up to around 65 basis points. The DJIA is expected to open solidly in the green.

On the data front, the nation’s Trade Balance for March was reported this morning to have widened to a negative $44.4B from February’s $39.8B. Estimates projected $44.2B. Later this morning, Markit U.S. Service is expected to announce that its Service Purchasing Managers’ Index remained at 27 in April while there is no prediction for its Composite PMI which will also be released. The Institute of Supply Management will also be publishing its Services PMI and it is forecast to have fallen in April to 38 from its March value of 52.5. Values below “50” portend contraction.