Asian Stocks Fall as Bond Yields Surge Ahead of Trump-Xi Summit 
European Stocks Fall as Bond Yields and Geopolitical Risks Weigh 
China’s ‘Lipstick King’ Says AI Won’t Replace Livestream Hosts 
US, China Extend Trade Truce to Jan. 10 Ahead of Trump-Xi Summit 
U.S. Treasury Yields Surge as 30-Year Hits 22-Year High 
Gold Holds Near $4,275 as Rising Treasury Yields Fuel Fed Rate Hike Bets 
US Stock Futures Fall as Treasury Yields Surge Ahead of Trump-Xi Summit 
Mexico-US Trade Talks Delayed to October as Tariff Negotiations Continue 
Japan Private-Sector Growth Slows as Domestic Demand Weakens 
Oil Prices Jump 3% as Houthi Attack Revives Supply Fears 
Gold Prices Fall as Treasury Yields Rise on Fed Rate Hike Bets 
Wall Street Falls as Treasury Yields Surge, Oil Rebounds on Iran Tensions 
Oil Prices Surge as U.S.-Iran Diplomacy Hopes Fade 
RBI Uses $10 Billion Currency Swaps to Drain Excess Rupee Liquidity 
Japanese Bank Stocks Surge as Bond Yields Fuel Rate Hike Bets 
Russian Envoy Dmitriev Heads to US for Ukraine Talks 
Oil Prices Ease as Iran Tensions Clash With Diplomacy Hopes 
Add as a preferred source on Google
Institutional investors are becoming increasingly worried about rising inflation risks in the United States, while concerns over slowing economic growth continue to fade. A new Bank of America global FX and Rates Sentiment Survey released on May 15, 2026, shows that resilient economic data is forcing markets to reconsider the possibility of additional Federal Reserve rate hikes.
The survey, which included 60 fund managers overseeing approximately $869 billion in assets, highlights a major shift in investor positioning across global markets. According to Bank of America analysts, investors are now far more focused on upside inflation pressures in the U.S. than on recession or growth slowdown risks.
The latest findings reveal that 28% of respondents believe U.S. economic growth is already properly priced into markets, but inflation risks remain significantly underestimated. This figure doubled from 14% in the previous month, signaling a rapid change in investor expectations. In addition, 25% of fund managers now see the Federal Reserve as the central bank most likely to surprise markets with more aggressive interest rate hikes.
Growing expectations for tighter monetary policy are also affecting bond markets. Investors are reducing confidence in long-duration bond trades and becoming less optimistic about U.S. yield curve steepening strategies. At the same time, strong economic data is boosting bullish sentiment toward the U.S. dollar, with many investors expecting further gains in the Dollar Index.
In Europe, sentiment around the European Central Bank remains divided. While 58% of surveyed investors believe additional ECB rate hikes would help maintain price stability, 31% consider further tightening a policy mistake that could hurt growth.
Emerging market debt sentiment improved modestly in May, particularly for local currency bonds. However, Bank of America warned that ongoing geopolitical tensions could weaken investor confidence. Meanwhile, institutional capital continues shifting away from cash holdings and into risk assets, with long-risk positions and commodities becoming the market’s most crowded trades in 2026.
