ING: The upward trend in bond yields shows no signs of reversal
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Golden Ten Data reported on May 18 that market momentum appears to be driving global yields higher, and ING's rate strategists believe there is currently no reason to reverse this trend. In their report, they pointed out that oil prices are rising again, and the Iran conflict is unlikely to be resolved in the short term. The strategists stated, "The market is beginning to reassess the notion that inflation is merely a short-term phenomenon and is increasingly factoring in expectations of more persistent inflation into forecasts." According to the strategists, recent eurozone inflation data indicate that price pressures are no longer limited to the energy sector, but are spreading to other areas of the economy.
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