A Lot Not to Like for Bonds

Global bond markets are under pressure as US yields target 4.5% on inflation concerns and UK Gilts underperform due to political instability and fiscal expansion fears.

Key Takeaways

• 1.US 10yr yields are trending toward 4.5% as inflation expectations re-ratchet higher due to stalled geopolitical talks and upcoming CPI data.
• 2.UK Gilt yields are underperforming peer markets as political instability and potential leadership changes raise fears of more expansive fiscal policy.
• 3.Eurozone rates remain tightly correlated with oil prices, maintaining a bear-flattening dynamic driven by inflation concerns.

Table of Contents

• Another wait; takes us to the weekend. Another week, and US Treasury stress ramps
• EUR curves still follow the oil price narrative, while UK yields face additional drivers
• Tuesday's events and market view
• Author
• Disclaimer

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