stock markets in major oil importing nations, such as Germany and the US, are singing a happy tune, celebrating the latest 20% energy tax cut. The sharp decline in crude oil prices from $75 to $60 per barrel, if sustained, would cut the US oil import bill by roughly $4 billion per month and the German import bill by $1 billion /month. German and US bond yields have also dropped by 40 to 60 basis points since mid-July, as inflation pressures receded due to sharply lower oil prices. CRB Index also highlights the wizardry of central bankers over global markets, when they act in lockstep for a common goal. By changing their short-term rates higher, central bankers from a dozen different countries, succeeded in frightening commodity speculator. The debate in the US bond market has now shifted as the Federal Reserve will start lowering the fed funds rate. The recent slide in crude oil prices to 7,000 yen per barrel has eased inflation fears in the Japanese bond market (JGBâs) The Bank of Japan has ended its radical policy of âquantitative easingâ (pegging interest rates at zero percent, and flooding banks with an excess of 26 trillion yen), and helped to wipe out some of the speculative froth in international oil prices âIncreases in interest rates would have a big effect on the governmentâs debt interest payments. We have to keep a close watch on their moves.â Japan had 765 trillion yen in sovereign marketable securities, or $6.5 trillion, outstanding at the end of June, compared with $4.3 trillion in the US Treasury market.