Stocks Rally as Falling Crude Prices Knock Bond Yields Lower
US stocks rose as WTI crude fell about 4%, pushing down bond yields. The 10-year Treasury yield fell 9 bp to 4.060% and German bund and UK gilt yields also declined. US data showed MBA mortgage apps +1.0%, new home sales -7.3% to 580,000, and a larger Q1 current account deficit (-$225.8B). Markets priced a 32% chance of a +25 bp Fed hike; ECB swaps implied 7%.