Chris Wood sees further rise in bond yields, oil at $100 a barrel

The 10-year and 30-year US Treasury finished at 1.34 per cent and 2.13 per cent, respectively, last week

The rise in US bond yields spooked investors last week and there could a further increase given the inflation dynamics, according to Christopher Wood, global head of equity strategy at Jefferies.

“The US bond market sell-off has continued over the past week, and with it the increased potential for an inflation scare. Still, there is plenty of scope for bonds to sell off more since the last time the 5-year forward inflation expectation rate was running at current levels (namely in early December 2018), the 10- and 30-year bond yields were significantly higher at 2.91 per cent and 3.17 per cent,