Oil tumbles, Treasuries rise as investors await Fed
By Hilary Russ
NEW YORK (Reuters) - Oil prices fell more than 3 percent on supply worries, while U.S. Treasuries rose and stocks flattened on Monday as markets awaited more clarity later this week from the Federal Reserve on when it might raise U.S. interest rates.
An upbeat assessment of the U.S. economy from Fed Vice Chairman Stanley Fischer on Sunday was viewed as raising the prospect of Fed Chair Janet Yellen flagging a rate rise at a meeting with world central bankers on Friday.
Treasury yields fell ahead of Yellen's speech, which will be scrutinized by investors.
"Everyone's kind of waiting on Yellen," said Lou Brien, market strategist at DRW Trading in Chicago.
Benchmark 10-year notes US10YT=RR gained 12/32 in price to yield 1.54 percent, down from 1.58 percent late on Friday. Bond yields move inversely to prices.
Oil prices faltered as China ramped up exports of refined products, with its July diesel and gasoline exports soaring 181.8 percent and 145.2 percent, respectively, from the same month last year, putting pressure on refined product margins.
U.S. oil producers also added rigs for an eighth straight week and the potential emerged for increased exports from Iraq and Nigeria.[O/R]
Brent crude LCOV6 settled down $1.72, or 3.4 percent, at $49.16 a barrel. It hit a two-month high of $51.22 on Friday. Continued...