Yields Likely to Go Higher Again: 3-Minutes MLIV
Speakers
Mark Cudmore
— Executive Editor, Bloomberg Live / Macro Strategist
Summary
Mark Cudmore expects short-term yields to rise further due to strong economic data and inflation from the AI boom and Middle East conflict. Higher yields are negative for gold and Bitcoin. He maintains the bond bear market will continue long term, with 10-year yields eventually reaching 5%.
- Middle East tensions push oil prices higher, adding to inflation concerns.
- Mark Cudmore anticipates short-term yields to move higher.
- Strong ISM and JOLTS data support the view of a resilient economy.
- AI investment boom is seen as inflationary in the near term.
- Higher yields are negative for gold, Bitcoin, and other speculative assets.
- The bond bear market is expected to continue, with yields eventually reaching 5%.
- UK gilts face unique dynamics with strong domestic demand but growth worries.
- The path for yields is not linear; dip buyers will periodically pause the rise.
Trade Ideas
Short-term yields higher again
In the very short term, yields should be higher again due to strong data (ISM, JOLTS), AI-driven inflationary impulse, and the Iran conflict pushing oil higher. The move is driven by inflation concerns, though the beta to inflation is slightly lower due to stagflation risks.
Gold Bitcoin hurt by yields
Higher yields are problematic for gold, Bitcoin, and other speculative assets as rising rates reduce their appeal relative to yielding assets.
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This Bloomberg Markets video, published June 03, 2026, features Mark Cudmore discussing TLT, GLD, BTC. 2 trade ideas extracted by AI with direction and confidence scoring.
Speakers: Mark Cudmore · Tickers: TLT, GLD, BTC