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CIO Academy - Rate moves have caught investor attention, but looking forward this could be for the right reasons

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Bond yields
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CIO Academy - Rate moves have caught investor attention, but looking forward this could be for the right reasons

by Georgios Leontaris, Chief Investment Officer for Switzerland and EMEA, HSBC Private Bank and Premier Wealth, & Laurent Lacroix, Head of Fixed Income, Global and Switzerland, HSBC Private Bank and Premier Wealth
Oct 14, 2026

Global bond yields have reached multi-year highs, driven by higher oil prices, a hawkish repricing of policy rate expectations, fears of rising AI related supply, deficit worries and technical drivers among other factors. Resilient economic data have pushed real yields higher, even as breakeven inflation expectations have held relatively steady. While the start of the year has led to lacklustre returns this year, the outlook ahead may appeal more to investors. While oil price volatility and budget discussions/midterm elections remain short term hurdles, futures markets are already priced for a hawkish policy path trajectory. A sizeable yield cushion has been embedded in current valuations, offering a near term offset to spread volatility, which we expect to be contained for high grade issuers given the strength of corporate earnings.

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Welcome to the latest episode of CIO Academy where Georgios Leontaris, Chief Investment Officer for Switzerland and EMEA and Laurent Lacroix, Head of Fixed Income, Global and Switzerland, dive into what's driving the global bond yields, and where can they go from here.

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