Higher for Longer

Moody’s Talks - Global Economy Unwrapped · Oct 1, 2026 · 37m

Surging government bond yields continue to raise alarm across the global economy. Gaurav, Andrew and Kamil unpack the latest sell-off in global bond markets and assess the relative importance of inflation fears, fiscal concerns and changing expectations for short-term interest rates. They explore the ongoing fallout from the Iran conflict, the prospect of further rate hikes by the ECB and Bank of England, and why investors increasingly seem to believe rates could settle at a higher level than before. Despite the volatility, the team concludes that bond markets may be sending a surprisingly…