Bonds Have Much More to Selloff In 2026: 3-Minutes MLIV
Speakers
Mark Cudmore
— Executive Editor, Bloomberg Live / Macro Strategist
Summary
Mark Cudmore predicts further bond selloff on persistent inflation, recommends buying stock dips near-term, and warns of a sharp post-Trump summit swoon. He also notes the AI bubble may continue for months before an earnings rug pull.
- Bond selloff expected to continue due to inflation and supply chain pressures.
- Near-term stock dips are buyable before a bigger pullback.
- A post-Trump summit stock swoon is likely as focus returns to lack of resolution.
- AI bubble may persist for another quarter before earnings disappoint.
- No major bullish catalyst expected from Trump-Xi summit.
- Strait of Hormuz disruption is a supply chain issue, not just energy.
Trade Ideas
Bonds will sell off further.
Bond yields have much more room to rise as inflation pressures persist from supply chain disruption (Strait of Hormuz), strong demand, and fiscal spending, leading to further bond price declines.
Buy stock dips near-term.
In the near term, stock dips should be bought because the AI bubble and strong growth continue, though dips will get bigger and a bigger selloff looms after the Trump summit.
Up Next
This Bloomberg Markets video, published May 14, 2026, features Mark Cudmore discussing TLT, SPY. 2 trade ideas extracted by AI with direction and confidence scoring.
Speakers: Mark Cudmore · Tickers: TLT, SPY