Treasury Yields Rise As Saudi Move Fuels Recession Fears

Treasury yields rise as the 2Q kicks off with expectations of tougher monetary policy in the wake of a surprising oil production cut announced by Saudi Arabia plus its OPEC countries allies. The 10-year is at 3.512% and the two-year at 4.106%. The world’s central banks could react to the resulting rise in oil prices by “extending rate hikes…creating and even steeper [recession] Spartan’s Peter Cardillo says in a note. The outlook for interest rate increases is also likely to be affected by this Friday’s March nonfarm payrolls data.