Bonds, Oil, Copper, Gold & The Dollar

On a regular basis, we like to check on the correlations among the fixed income, commodity, and foreign currency markets. Here are a few of our observations:

(1) Bonds. The 10-year US Treasury bond yield has normalized, fluctuating in a range roughly between 4.00% and 5.00% (chart). That's where it traded for a few years prior to the Great Financial Crisis. The same can be said about the 10-year TIPS yield. It has been fluctuating around 2.00% since late last year. It did the same for a few years prior to the GFC.