Treasury Yields Drop as Oil Prices Slump and Inflation Outlook Cools
• Treasury yields resumed declining as oil prices tumbled and inflation expectations fell • Rates across the maturity spectrum were lower by at least 5 basis points • The 5-year note's yield declined nearly 9 basis points to 3.92% • A near 5% drop in US benchmark oil futures reinforced expectations of slowing inflation • New York Fed survey found declines in expected inflation rates over several time horizons