XPS Pensions flags oil — driven inflation as trigger for Q3 global bond selloff, higher yields

XPS Pensions Group analysis flagged a Q3 global bond selloff driven by higher inflation expectations tied to Brent crude rising to USD 100. US Treasury doubled long-term bond buybacks in August to curb financing costs as yields climbed. Fed lifted rates 0.25% to 3.75%-4.00%, with four more hikes priced over 12 months; ECB raised to 2.5%, BOJ to 1.25%. Bank of England held Bank Rate at 3.75% despite UK CPI inflation at 3.1% in the 12 months to August. UK DB pension scheme funding improved on a low-risk basis as higher gilt yields reduced liabilities; LDI recapitalization remained muted. Disclaimer: This news brief was created by Public Technologies (PUBT) using generative artificial intelligence. While PUBT strives to provide accurate and timely information, this AI-generated content is for informational purposes only and should not be interpreted as financial, investment, or legal advice. XPS Pensions Group plc published the original content used to generate this news brief on October 12, 2026, and is solely responsible for the information contained therein. (C)