Bloomberg Surveillance · Monday, September 28, 2026
Bob Michael attributes the recent rise in yields to a combination of escalating Middle East tensions, which pushed oil prices higher, and hawkish commentary from Federal Reserve speakers, including New York Fed President Williams. He notes that the market was caught off guard by these developments.
“Well, I think a couple things synced up last week. One is we got midway through the week and it was clear there wasn't going to be a peace accord yet. in the Middle East during UN week. So suddenly you've got oil going higher. You've got everyone concerned about the second round effects of that. Will that get passed through to finished goods and services? And then you had some Fed speakers come in, notably New York Fed President Williams talking about more may need to be done. And if you go back a week earlier, he was one we thought could be a dovish dissent. And I think those couple of things caught the market off guard probably there were a couple stops along the way, so we've had the backup.”