Bloomberg Surveillance · Thursday, July 23, 2026
Jim Karen from Morgan Stanley notes that rising oil prices are driving up global bond yields, indicating a macro trend rather than an isolated US issue. He suggests that inflation is moderating but will likely remain elevated, leading to a reset of the yield curve higher.
“Dollar yen is also up around three. Global bond yields are up, right, So I don't think this is you know, we should frame this story as not an exclusive US story, but this is more of a global macro story in terms of what's taking place.”
“It seems like inflation, you know, is moderating, but it's still high, and I think the I think the takeaway here is that inflation is going to likely stay higher for longer given what's happening in energy prices, and that resets the entire yield curve. It shifts the entire yeal curve a bit higher, Whereas we had a little bit of a break, you know, over the past couple of weeks when oil prices went down, and I think that's just reasserting itself.”