Energy stocks, Treasury yields send U.S. inflation signal

Energy stocks and Treasury securities are sending similar signals about the U.S. inflation outlook, according to Michael Hartnett, Bank of America Corp.’s chief global investment strategist. He cited gains among “energy laggards,” specifically Occidental Petroleum Corp., and higher Treasury yields in a report Friday. The chart makes a wider comparison between the S&P 500 Energy Index and the yield on 10-year notes, which have both worked their way higher since March. “Trends say higher inflation,” Hartnett wrote, and commodities and other real assets are reaping the benefits.