Bonds
Bond Market in Oil’s Grip Ponders Shifting Focus to Growth Worry
A sign displays the prices of unleaded gasoline at a Shell gas station in Palo Alto, California, US, on March 10.
Photographer: David Paul Morris/BloombergBond investors are starting to ponder whether the inflation worries sparked by the Iran war will soon tip over into concern about the risk to economic growth from elevated oil prices.
For now, with crude around the most expensive since the aftermath of Russia’s invasion of Ukraine in 2022 — the last time US Treasuries and oil were correlated this closely — the threat of hotter inflation is top of mind for investors. And it will likely be for Federal Reserve officials as well when they meet this week.