Economist Mohamed El-Erian has warned that surging global yields are being actively driven higher by energy costs and "massive bond issuance ahead," coming just ahead of next week's Federal Reserve meeting, where market participants expect benchmark interest rates to remain unchanged for now.
Nominal Yields Spike Across Major Economies Highlighting a broad bond market selloff, El-Erian noted that nominal yields are rising sharply across major advanced economies.
Specifically, the "US 10-Year is approaching 4.70%, UK 5.10%, Germany 3.20%," with notable upward movement occurring at the front end as well.
El-Erian observed that "higher oil prices — and, I suspect, further indication of massive bond issuance ahead–" are pushing rates higher on the day of the ECB policy decision.
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