Week of 18 - 22 May 2026 |  Rising yields, rising uncertainty

In this edition of Amundi's Weekly Market Directions: 

• The US 30Y yields rose to 5.19%, the highest from 2007, while the 10Y moved above 4.5%. Yields across Europe and Japan also rose.
• Pressure on global long-term bonds has been driven by uncertainty over inflation, monetary policy and fiscal spending.
• All these factors support a more nuanced view of fixed income, with a close eye on the evolution of inflation and economic growth.

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Monica Defend

Monica Defend

Head of Amundi Investment Institute

Bond yields at the short end of the curve moved up as markets repriced central bank action in response to inflation. Long-end yields rose mainly because of higher risk premium, as the war in the Middle East continues to create uncertainty.

Monica Defend, Head of Amundi Investment Institute

Read the full weekly market directions

*Diversification does not guarantee a profit or protect against a loss. 

Unless otherwise stated, all information contained in this document is from Amundi Asset Management S.A.S. and is as of 22 May 2026. Diversification does not guarantee a profit or protect against a loss. The views expressed regarding market and economic trends are those of the author and not necessarily Amundi Asset Management S.A.S. and are subject to change at any time based on market and other conditions, and there can be no assurance that countries, markets or sectors will perform as expected. These views should not be relied upon as investment advice, a security recommendation, or as an indication of trading for any Amundi product. This material does not constitute an offer or solicitation to buy or sell any security, fund units or services. Investment involves risks, including market, political, liquidity and currency risks. Past performance is not a guarantee or indicative of future results.
 

Date of first use: 22 May 2026

Doc ID: 5516584