Mohamed El-Erian Warns Higher Oil, 'Massive Bond Issuance' Are Driving Global Yield Surge Ahead Of Fed Meeting
Economist Mohamed El-Erian has warned that surging global yields are being actively driven higher by energy costs and “massive bond issuance ahead,” coming just ahead of next week’s Federal Reserve meeting, where market participants expect benchmark interest rates to remain unchanged for now. Nominal Yields Spike Across Major Economies Highlighting a broad bond market selloff, El-Erian noted that nominal yields are rising sharply across major advanced economies. Specifically, the “US 10-Year is approaching 4.70%, UK 5.10%, Germany 3.20%,” with notable upward movement occurring at the front end as well. El-Erian observed that “higher oil prices — and, I suspect, further indication of massive bond issuance ahead–” are pushing rates higher on the day of the ECB policy decision. U.S. Treasury data mirrors this move, showing 10-year yie...
Economist Mohamed El-Erian has warned that surging global yields are being actively driven higher by energy costs and “massive bond issuance ahead,” coming just ahead of next week’s Federal Reserve meeting, where market participants expect benchmark interest rates to remain unchanged for now. Nominal Yields Spike Across Major Economies Highlighting a broad bond market selloff, El-Erian noted that nominal yields are rising sharply across major advanced economies. 20%,” with notable upward movement occurring at the front end as well.
El-Erian observed that “higher oil prices — and, I suspect, further indication of massive bond issuance ahead–” are pushing rates higher on the day of the ECB policy decision. S. 16%, at the last check. com/jyxl8Luo3u - Mohamed A.
El-Erian (@elerianm) July 23, 2026 Read Also: Could Warsh Break a 56-Year Fed Rate-Hike Streak? Generational Opportunity vs. Impending Debt Crisis This rapid elevation in real yields has s plit market analysts on the ultimate trajectory of the global economy. ” Recent bond selloff has driven 30yr TIPS to near 3% real yields.
While everyone roots around to find the next hot stock, this is likely the generational buying opportunity hiding in plain sight. S. ” Few are paying attention. If this continues and left unchecked the greater the chance it could spark a debt crisis.
Bessant and Warsh actively pushing the US dollar higher at the expense of its bond market resulting in a rapid rise in real yields. 15%. " If the Fed takes inflation seriously, bond investors can stay calm. If the Fed wants to continually rationalize that inflation is not a problem, bond investors might panic.
Is this why bond… - Jim Bianco (@biancoresearch) July 22, 2026 How Have Markets Performed In 2026? 34% year-to-date. 93% YTD. The SPDR S&P 500 ETF Trust (NYSE: SPY ) and Invesco QQQ Trust ETF (NASDAQ: QQQ ), which track the S&P 500 and Nasdaq 100, respectively, closed lower in premarket on Thursday.
90. 75 on Thursday. Read Also: Peter Schiff Warns Rising Interest Rates Are a 'Much Bigger' Threat With US Debt Nearing $40 Trillion Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published editors. Image via Shutterstock