The market view of the oil, AI and bond trades went through a major change in October

In October 2026, the long-standing correlation between rising oil prices and treasury yields broke down, signaling a shift in market dynamics. BlackRock's Jeffrey Rosenberg attributes this to a deflation in the AI trade, which now dominates market concerns over geopolitical risks. The AI sector's recent weakness has influenced bond yields and reflects broader economic sentiment, despite strong AI-driven GDP growth in Q3.