Rising Bond Yields Will Be Key for 2026: 3-Minute MLIV

Global Bond Market Trends - Global bond yields are expected to continue rising due to various factors including rate hikes in France and fiscal situations in Europe, which are adding upward pressure on global bond rates [2] - The Federal Reserve's potential rate cuts may not lead to a decrease in yields, indicating that the U.S. could be influenced by the global trend of rising rates [3][8] U.S. Economic Context - The U.S. fiscal policy is characterized by significant spending, which is likely to persist as the mid-term elections approach, potentially impacting bond yields [3][4] - The Supreme Court ruling may introduce uncertainties, but the administration remains optimistic about implementing its fiscal agenda [5] Commodity Market Insights - Prices for metals such as copper, gold, and silver are also on the rise, reflecting a broader trend of increasing commodity prices globally [6] U.S. Equity Market Dynamics - The U.S. equity market has seen increased participation from small-cap stocks, which is a positive sign; however, rising yields could pose challenges for these stocks [12][13] - Concerns over capital expenditure plans have emerged, with companies like Oracle experiencing negative impacts, indicating a cautious sentiment among investors [11]