Bond yields closely track diesel prices now, and Trump's deal with Putin may be too little too late
Bond yields closely track diesel prices while Donald Trump faces mounting economic pressure to lower fuel costs ahead of the midterms. Diesel and gasoline drive inflation rather than crude oil. US diesel prices remain 71 percent higher year over year, while 10-year Treasury yields track diesel more closely than crude. Meanwhile, Trump aims to reduce fuel costs and pushes officials to use the Defense Production Act to raise oil and fuel output. However, attempts to boost diesel supplies have not yet lowered prices.
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- ✓ US diesel prices remain 71 percent higher year over year.
- ✓ 10-year Treasury yields now track diesel more closely than crude oil.
- ✓ Three sources say Trump will push US officials to use the Defense Production Act to raise oil and fuel output.
- ✓ The UK does not support Trump's Russia diesel deal, according to the defense secretary.
What changed
Three sources report that Trump plans to push US officials to use the Defense Production Act to raise oil and fuel output.
Live updates
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Bond Yields Track Diesel as Trump's Putin Deal Falters
Bond yields closely track diesel prices while Donald Trump faces mounting economic pressure to lower fuel costs ahead of the midterms. Diesel and gasoline drive inflation rather than crude oil. US diesel prices remain 71 percent higher year over year, while 10-year Treasury yields track diesel more closely than crude. Meanwhile, Trump aims to reduce fuel costs and pushes officials to use the Defense Production Act to raise oil and fuel output. However, attempts to boost diesel supplies have not yet lowered prices.
Why it matters
Conflicts in Ukraine and Iran created major ripple effects across global energy markets, causing significant price swings. Analysts report that fuel from the Russia deal will take weeks to ship, the quantity is too small to affect prices, and the full deal is unlikely to be met due to damage to Russian refineries. The UK defense secretary stated that the UK does not support the Russia diesel deal.
What is confirmed
- US diesel prices remain 71 percent higher year over year.
- 10-year Treasury yields now track diesel more closely than crude oil.
- Three sources say Trump will push US officials to use the Defense Production Act to raise oil and fuel output.
- The UK does not support Trump's Russia diesel deal, according to the defense secretary.
Still unconfirmed
- Fuel from the Russia deal will take weeks to ship and the quantity is too small to affect prices.
What to watch next
- Whether the use of the Defense Production Act successfully raises oil and fuel output.
- Official actions regarding the implementation and impact of the Russia diesel deal ahead of the midterms.
confidence 90%Sources used for this update (15)
- finance.yahoo.com — Yahoo Finance - Stock Market Live, Quotes, Business & Finance News
- www.cnn.com — Breaking News, Latest News and Videos | CNN
- www.bbc.com — BBC Home - Breaking News, World News, US News, Sports, Business...
- BBC — Trump wants to reduce the cost of fuel as the midterms loom - will it work?
- Yahoo Finance — Trump's moves to boost diesel supplies have not yet lowered prices
- Reuters — Trump to push US officials to use Defense Production Act to raise oil, fuel output, three sources say
- Fortune — Bond yields closely track diesel prices now, and Trump's deal with Putin may be too little too late
- Business Insider — Trump's quest to bring down gas prices ahead of the midterms is not going great
- fortune.com — Bond yields closely track diesel prices now, and Trump's deal ...
- www.bbc.co.uk — UK does not support Trump's Russia diesel deal, says ...
- www.cnbc.com — Trump's diesel dilemma — by the numbers - CNBC
- www.theguardian.com — Trump’s deal with Putin will have little impact on US diesel ...
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