Bond Market’s Big 2026 Fed Bet Flipped on Its Head by Oil Surge

Bloomberg Bond traders are scrambling for a new strategy after the oil-driven inflation shock triggered by the war in Iran scuppered the popular bet on interest-rate cuts from the Federal Reserve. The trade suffered a total blowout this week as warnings from key central banks on inflation sent short-maturity yields soaring, and as traders fully erased expectations for further Fed easing in 2026. Most Read from Bloomberg By Friday, with global benchmark oil prices holding around the highest since 2022, ...