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The case for a directional move in U.S. Treasury yields was muted early Wednesday, a fact that complicates the usual narrative where energy price swings dictate fixed-income flows.
While oil prices oscillated throughout the session, the bond market refused to react, leaving traders without a clear signal on where risk appetite is heading.
This divergence sets up a tension between the energy sector's instability and the relative calm in the debt market. The evidence points to a market that is currently decoupling from crude oil movements.
Treasurys held steady, indicating that investors are not pricing in immediate inflationary pressures from the volatile energy sector.
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