Post #15930

Oil Above $90 Sends Global Yields Higher as Inflation Shock Gets Priced In Crude is extending gains into the weekend, with Brent back through $90 for the first time since April 2024. Estimates suggest the market is losing millions of barrels per day of crude and products due to reduced/blocked traffic through the strait. Bond markets are reacting exactly how they do during an energy shock: global yields are jumping as investors reprice inflation risk and scale back rate-cut expectations. This move has been broad-based across major markets (U.S., Europe, UK, etc.), and it’s been strong enough to show up as a multi-session selloff in global bonds. Higher oil → higher inflation expectations → higher yields. That combination tends to keep the USD supported for longer, while pressuring stocks through tighter financial conditions and weighing on gold when the dollar and yields are doing the heavy lifting - Alan