Bob Elliott
· Nonconsensus
· May 12, 2026 at 10:11
· ⏱ 3 min read
| Read on Substack ↗
Summary
The author argues that rising oil prices are a significant problem for the bond market, pushing global yields to new highs and tightening financial conditions. This creates a dual economic drag by eroding household purchasing power and increasing borrowing costs, a dynamic that equity markets seem to be ignoring.
•Rising oil prices are pushing global bond yields to cycle highs.
•This increase in yields is tightening financial conditions across developed markets.
•Oil shocks present a dual threat: eroding real purchasing power for households and creating further economic tightening through higher yields.
•Global equity markets are currently looking past these direct economic drags.