Odd Lots · Thursday, October 1, 2026
Luke Kawa attributes the rise in global bond yields primarily to a strong global growth impulse and increased economic activity, rather than a significant shift in inflation expectations. He notes that industrial sectors worldwide are performing well, suggesting a broad-based economic upswing.
“Predominantly, I think it's the same story for both or the same. Like if you had to do a principal component analysis or something, I think what would stick out across the board is it's the global growth impulse. It's activity. It's both in the U.S. and globally.”
“I think we see the industrial side of every economy is doing incredibly well and expected to do so.”
“If you just had an elevator pitch with someone, why are bond yields high? Because growth is really strong, that's putting inflation up, and central banks are expected to respond to that.”