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Opec isn’t scaring anyone

For example, here is Capital Economics’ Adam Hoyes:

The [initial] moves in the bond market [with inflation breakevens rising following the Opec + announcement] have more than reversed since the release of the March ISM Manufacturing survey, where the headline index slumped to a new cyclical low and other indices pointed to a further easing in price pressures. We wouldn’t be surprised if this pattern — higher oil prices but lower Treasury yields — continued over the rest of this year, even though they’ve often moved together. Admittedly, we do think oil demand is set to be weak over the rest of this year, with growth in many major economies likely to be sluggish at best.

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