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المشهد العربي
Oil and U.S. bond yields show strongest link since 1990
The financial markets have experienced an unprecedented correlation between oil prices and U.S. Treasury yields, reaching the highest level since 1990. The correlation coefficient stood at approximately 65% in September, close to the previous record of 66%. Analysts at TS Lombard explained that each dollar increase in the West Texas Intermediate (WTI) crude oil price is associated with an approximate 0.02 percentage point rise in the yields of the 10-year bonds, reflecting the impact of oil price volatility on the debt market. Experts noted that the repercussions of the conflict in the Middle East have become a major driving force for global bond markets, with investors shifting more toward trading in the oil market rather than relying solely on economic data and central banks.
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