The divergence follows a period where oil and 10 year US Treasury yields hit their tightest correlation since the 1990 Gulf War, reaching a 65% correlation. This synchronization increased the leverage of Iran's parliament speaker Mohammad Bagher Ghalibaf, as previous trends showed rising WTI crude prices prompt bond investors to anticipate rate hikes, thereby amplifying economic pressure on the global economy via the Strait of Hormuz.
Tuesday, October 20, 2026
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Goldman Calls Oil and Bond Decoupling Biggest Risk to Stocks
US Markets20 days ago
US Treasury yields rose on Tuesday despite a decline in oil prices for a second consecutive session. Analysts at the One-Delta Desk at Goldman Sachs identify this breakdown in the historical beta between energy and rates as the biggest risk to equity markets at present, as oil prices no longer seem to drive interest rate volatility.
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