Global bond selloff resumes as surging oil prices stokes fears about inflation

AI desk brief

Global bond yields resumed their selloff as oil jumped 6% to above $107/bbl on renewed Middle East supply fears, lifting inflation expectations and reinforcing a hawkish rates backdrop. UK 10y gilts moved above 5.37% and US 10y yields hit 4.92%, while ECB and BoE officials signalled persistent inflation pressure and the market looks ahead to Fed/BoE meetings next week.

For precious metals, the near-term read is mixed: higher energy-driven inflation is supportive for gold as a hedge, but the immediate market impulse from surging nominal yields is a headwind via higher real rates and a firmer USD if the selloff extends. Key catalyst remains whether policymakers lean harder against inflation or whether growth fears eventually cap yields.