Good morning.

Crude is up this morning so the 10 year rate is down. This is a 60 minute chart of the 10 year vs crude and you will notice that the two are in lock step right now. On the daily chart this link was established when Crude Oil broke above 63 dollars a barrel back in early August and they have been in lock step ever since. What the bond market may be telling us is the impact on the economy begins at the magic price of 63 dollars. 10 year yields and oil will move in lock step until or if oil breaks below 63. Under 63 dollars may be the trigger point for the fed to say its safe to keep raising rates because there will be no impact from high oil (under 63). As for what this means to MLPS i'm not sure. High oil and low 10 year rates would be supportive to prices but i would think that at some point too high crude and gas will have an impact on demand...the circular argument continues...However i do think it is important to recognize that bond and oil are holding hands right now as the skip up the hill. The question is whether its jack or jill or both that come tumbling down?

No corporate news or upgrades/downgrades so far but the day is young!