comment on the following critically: The correlation between the Ten Year Treasury and Mortgage rates happens because the ten year treasury has typically been considered the measure of risk free return in that it is backed by the full faith and credit of the United States. As a result, any loans made would typically need to outpace the returns generated by investing in treasuries to account for risk inherent in making a loan. The two numbers move in tandem because the general risk profile of making a mortgage loan is fairly constant. The correlation between gold prices and the US dollar is a negative correlation also due to considerations of risk. In times of high inflation, investors typically will move money to assets they think will hedge against the inflation risk, like hard assets (gold, in this case) or a flight to other quality