IBT: Early weakness for bonds dissipates as crude oil reverses
The knee-jerk drop in government bond yields that accompanied the announcement of bin Laden's demise is wearing off like a nerve-numbing analgesic. The argument that Al-Qaeda is rudderless following the loss of its leader and that the risk appetite hatches have been blown right off is simply Monday morning wishful thinking. Crude oil prices had fallen by a couple of dollars in response to the lower threat of terror after bin Laden's announced death, but bonds have turned around in the face of a rally for crude prices.
