The Treasury market is trading like the oil market, an economist says

An economist has suggested that oil prices, not just the Federal Reserve, may be driving Treasury yields in today's market. According to GlobalData TS Lombard chief US economist Steven Blitz, a $1 move in oil has historically tracked a roughly 2-basis-point move in the 10-year Treasury yield. The recent sell-off in US government bonds has become closely tied to swings in crude oil prices as the conflict in Iran fuels inflation concerns. Early Thursday, the benchmark 10-year US Treasury yield was trading above 5.1%, having hit its highest level since the Global Financial Crisis a day earlier.

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