Core FI Happy To Look Through Oil Rally

Core fixed income fairly insulated from today's rally in crude (WTI & Brent trade over $1.00 above their respective settlement levels at typing), outside of the early and limited foray lower. As we mentioned earlier, the German federal election avoided the formation of coalition between the 3 left leaning parties, which would have provided the biggest policy shock out of the potential outcomes, which is perhaps supporting the space. Perhaps some fiscal uncertainty in DC is also playing into the mix. Still, a reminder that U.S. Tsy supply is front-loaded this week, with 2s and 5s set for auction on Monday, while 7s will be auctioned on Tuesday.