Energy Angst to Keep Pushing Yields Higher: 3-Minutes MLIV

• European bond yields are expected to continue rising, driven by ECB rate hikes and persistent inflation, with potential for curve flattening.
• UK gilts are at risk due to acute energy exposure, elevated shop prices, and upcoming fiscal risks, challenging the Bank of England's assumptions.
• The US August Nonfarm Payrolls report is unlikely to be a game-changer for Fed policy, as the central bank remains focused on inflation, with the CPI report having the final say.

Adam Linton discusses the outlook for European and UK bond markets, expecting yields to continue rising due to persistent inflation and hawkish central bank policies. He notes the ECB's hiking path and potential for a policy mistake by the Bank of England amid fiscal risks. For the US, he views the upcoming payrolls report as unlikely to be a game-changer, with the Fed remaining focused on inflation.