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Oil-driven inflation fears push US bond yields higher for longer as Fed chief Kevin Warsh faces pressure
Economy
Published on 15 May 2026
Crude oil is moving yields more than Fed signals
Investors are bracing for US Treasury yields to stay elevated, driven mainly by oil prices rising amid a prolonged Middle East conflict and persistent inflation above the Fed’s target for nearly five years. Long-dated yields, including the 10-year benchmark, have surged—up about 45 basis points since early March and hitting an 11-month high. Higher borrowing costs could weigh on growth and equities, while Warsh must manage inflationary pressures beyond the Fed’s direct control.
- Long-dated Treasury yields have climbed sharply in recent weeks
- 10-year yield rose about 45 basis points since early March
- The 10-year yield touched an 11-month high
- Investors see surging oil prices as the main driver of yield gains
- Markets price no change to the Fed policy rate target at 3.5% to 3.75% this year
- A Warsh signal favoring early rate cuts could raise long-term yields further
Read the full story at The Economic Times
This summarization was done by Beige for a story published on 
The Economic Times