Yields Surge as Inflation and Oil Rattle Markets

Global bond markets sold off as 3.8% YoY inflation and surging oil prices near $109 rattled rate expectations. The 10-year Treasury yield rose to 4.59% while credit spreads remained resilient.

Key Takeaways

• 1.Kevin Warsh was confirmed as Fed Chair, ending Jerome Powell's eight-year tenure.
• 2.Hotter-than-expected CPI and surging oil prices caused a sharp sell-off in global bonds, pushing yields up 20-25 bps.
• 3.Credit spreads remained resilient despite the rate backup, with investment grade and high yield spreads tightening.

Table of Contents

• Market recap
• Outlook
• Key takeaways
• WHAT WE'RE WATCHING:
• Weekly fixed income snapshot
• U.S. Treasuries
• Tax-exempt municipals
• Taxable municipals
• Investment grade corporates
• U.S. high yield corporates
• Preferred securities
• Senior loans
• Securitized credit
• Global emerging markets
• U.S. Treasury market yields
• Fixed income characteristics and returns
• Important information on risk

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