Oil Prices Tied to US Treasury Yields in Tightest Relationship Since 1990

The relationship between oil prices and US Treasury yields has reached its tightest since 1990, according to Financial Times data. The correlation coefficient, which measures how closely two variables move together, has risen to 0.83 for 10-year US Treasury yields and West Texas Intermediate (WTI) crude oil prices. This is the highest level of correlation since at least 1990.

The FT notes that this relationship is not surprising given the global economy's reliance on oil exports and the role of US interest rates in shaping global financial markets.