Bloomberg Surveillance · Wednesday, July 22, 2026
Sapatri attributes rising US Treasury yields to several factors, including higher oil prices due to renewed conflict in the Middle East, potential Bank of Japan policy shifts, and growing US debt and deficits. Persistent market pricing reinforces the possibility of a Fed hike.
“The Iron Wars is fully back on. You have higher oil prices. You're looking at the impact of higher oil prices kind of feeding through to all of the other economies in the world. Europe and Japan are extremely impacted by that. So you start to see those economies start to markets I should say, start to price in more hikes and higher yields, and then you're seeing the route in the In the end, inflation expectations in the US have been somewhat contained, but I am concerned about the trajectory for debt and deficits.”
“The Trumpet mutations asked for eighty seven bit an extra and supplemental funding for the war as well as for the Farm bill, and you're looking at refunds from MAIPA also contributing to higher deficits in the month of June.”
“But you are seeing real yields on US tenure treasure is reaching the highest levels since twenty twenty three, two point three four percent. How high do you see that getting if the FED does not high rates, if the FED remains on hold despite what the market seems to be suggesting.”