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US Treasury yields fall amid oil sell-off

CME options pit
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U.S. sovereign bond prices rose Monday, pushing yields lower after oil prices tumbled and stocks attempted to hold gains.

Oil prices remained at the forefront of investors' minds as Brent crude oil prices fell to levels last seen in 2004 on Monday, dropping below the lows hit during the 2008 financial crisis on renewed worries over a global oil glut. The Dow Jones industrial average also gave up a 100-point gain and briefly dipped into negative territory before recovering.

U.S. 10-year Treasury yields hit a one-week low of 2.174 percent and last traded at 2.1908 percent, after closing at 2.197 percent on Friday.

Longer dated 30-year bond yields traded at 2.9147 percent after finishing at 2.92 percent in the previous session.

Symbol
Yield
 
Change
%Change
US 3-MO
---
US 1-YR
---
US 2-YR
---
US 5-YR
---
US 10-YR
---
US 30-YR
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Brent futures were last down about 1.4 percent at $36.38 a barrel.

U.S. West Texas Intermediate (WTI) futures were last down 18 cents at $34.55 per barrel, and touched a fresh low for the year during the session.

Heading into the final two weeks of the year, limited liquidity is likely to heighten the severity of market moves, particularly during the holiday periods of Christmas and New Year's Eve, when most Western markets will be closed.

"If 2015 was the year when interest rates didn't rise as rapidly as most originally expected, then 2016 is likely to be the opposite, with a bigger than expected rebound in inflation forcing the Fed to abandon its current pledge that the policy tightening cycle can be unusually gradual," said chief North American economist at Capital Economics, Paul Ashworth.

On the data front, the only major release was the Chicago Fed National Activity Index for November, which came at minus 0.3.