05/28/2026
📊 Chart of the Week: Higher oil, higher yields - Is the Inflation trade back?
Oil prices have been rising again, and US bond yields are moving higher at the same time.
This matters because higher oil prices can keep inflation pressure alive. When inflation risks rise, markets start to question whether the Fed can cut rates as soon or as much as previously expected.
The chart shows this clearly: as Brent oil climbed, US 10-year and 30-year yields also moved higher.
For investors, the message is simple:
Higher energy prices are not just a commodity story. They can quickly become an inflation, interest rate, and equity market story.
The key question now:
If oil stays high, will markets need to rethink the path for inflation and interest rates?