What started to appear that the price of oil had settled into somewhat of a respectable range, today oil futures fell even further. Brent crude closed at $48.17 and many are predicting the price of oil will soon fall even further. If that indeed is the case, we can expect a couple of things to come true, a weaker treasury yield 1.65 higher than 30 yearWall Street and more distance between now and the Fed’s 2.00% target inflation rate.

This comes on the heels of a report released by the Energy Information Administration stating crude oil supplies increased by another 4.5 million barrels, making it nine weeks in a row oil stockpiles have hit a record, this reported in a story on cnbc.com. In the story, it was noted this is the most oil we’ve had in storage dating back to the 1930s. While the number of drilling rigs has dropped and placed into mothballs, producing wells are still, well, producing. It seems oil producers are playing the same game as the Saudis, by keeping production up to make up for lower prices.

If this continues, equities will take a hit and there doesn't appear to be too much on the economic forefront to reverse the oil slide.  Stocks fell slightly today on falling oil prices as well as a continued eye toward the June FOMC meetings. The Dow closed at 17635.39, losing -27.59, the S&P500 closed lower at 2040.24 and still holding well above 2000. The NASDAQ dropped -9.85 to close at 4849.94. Recent losses on Wall Street have essentially lost all gains made so far in 2015. Mortgage bonds have fared a bit better, with the benchmark FNMA30-yr 3.0 coupon closing up 5/32 to 101.05. As well, a 10-year Treasury auction was held today and demand was the highest since last December at 2.65, 1.64 higher than the 30 year coupon today.