Oil prices and Treasury yields are moving almost perfectly in tandem, creating an increasingly dangerous combination for stocks, bonds, businesses and consumers already contending with renewed inflation pressures.
The one-month rolling correlation between front-month West Texas Intermediate crude oil and the benchmark 10-year Treasury yield has climbed to 0.96, according to BMO Capital Markets data cited by CNBC. That is the strongest positive relationship between the two since June 2019 and, before that, October 2014.
