WS #14978
US 30-year Treasury yields spiked to 5.535% as inflation fears from the oil shock took hold, with Evercore ISI warning of an imminent yield-curve inversion. Simultaneously, the Bank of England signaled a more hawkish stance due to food-price inflation risks, suggesting global central banks may be forced to maintain restrictive policy longer than markets anticipated. This macro environment is highly bearish for high-multiple growth stocks and REITs, while offering a tailwind for financials' net interest margins.
Treasury Yields and Macro
US 30-year Treasury yields spiked to 5.535% as inflation fears from the oil shock took hold, with Evercore ISI warning of an imminent yield-curve inversion. Simultaneously, the Bank of England signaled a more hawkish stance due to food-price inflation risks, suggesting global central banks may be forced to maintain restrictive policy longer than markets anticipated. This macro environment is highly bearish for high-multiple growth stocks and REITs, while offering a tailwind for financials' net interest margins.