Little-Moved by Huge Drop in Oil and Tech Stocks

Bonds were technically stronger at 4pm ET, but just barely. Over the past 2 sessions, we've seen Treasury yields noticeably disconnect from the prevailing correlation with tech stocks. This began after the opening bell last Friday and mostly continued today. Bonds were generally improving while the NASDAQ was higher for most of the day and then sold off starting at 1pm when tech stocks saw their biggest losses (i.e. the opposite of the prevailing correlation). Part of the credit for the bond selling goes to the market's takeaway from Treasury's preliminary borrowing estimates which were $24 billion higher than expected before adjusting for estimated cash balances. Some of the earlier strength in bonds aligned with a sharp decline in oil. While it's true that oil has been the opposite of a reliable source of inspiration for bonds, today's drop was sharp enough to possibly make an exception.