Bonds are selling off, gold is lower and the US dollar is strengthening after headlines continue to suggest that OPEC will deliver a collective cut. An extension of current policy cut and the Saudi ‘lollypop’ 1 mbpd cut already appear to have been agreed and leaks suggest say that another 1 mbpd could be coming for all of Q1.
That highlights ongoing unity at OPEC, despite some modest cheating on quotas.
Oil itself is only up $1 but the broader market is feeling an inflationary impulse at the same time, though it’s small compared to what we’ve seen recently.
US 10y yields