Over the past few weeks, one thing has been certain: Oil prices rise, driving yields higher and pushing stocks lower. Except that's not what's happening today. Stock futures were higher even as Brent crude briefly topped $97 per barrel for the first time since late July. Meanwhile, the 10-year Treasury yield fell 6 basis points to around 4.74%.
Federal Reserve Governor Christopher Waller said he would support keeping the central bank's overnight rate where it is today, in a range of 3.5%-3.75%. He noted that recent trends "suggest we are finally seeing some signs of disinflation." If this continues, he would be inclined to support holding the target for the federal funds rate at its current setting.
Additionally, a sharp rally in the Japanese yen, which rose nearly 2% against the dollar, has also impacted the market. A stronger yen could mean Japan wouldn't need to sell its U.S. Treasury holdings.
