Institutional asset managers use the copper–gold ratio as one of the 10-year Treasury yield’s leading indicators. Indeed, as the spread between bond yields and the ratio widened in the third quarter of 2022, DoubleLine Capital CEO and Chief Investment Officer Jeffrey Gundlach cited the relationship, observing that “the 10-year US Treasury fair value yield is below 2%.” As the divergence persisted earlier this year, the copper–gold ratio was, in Gundlach’s words, “screaming that the 10-year should go lower.” {chart} But given asset managers’ focus on the ratio’s connection to Treasury yields, we need to understand the ... (full story)