Quilter Cheviot strategist Armitage says inflation fears drive bond yields higher, hit equities
TLT•Quilter Cheviot strategist Tim Armitage said rising inflation fears are pushing bond yields higher and pressuring equities and fixed income, with UK yields above 6% and oil near $100.
1. Yields and inflation fears
Tim Armitage warned that volatility has returned as inflation fears rise, with oil near $100. Global bond yields climbed again, and UK yields moved above 6%; markets are pricing further rate hikes as growth stays robust, pressuring equities and fixed income.
2. AI and UK concerns
The Bank of England cautioned that the AI boom could trigger market corrections, while Governor Andrew Bailey said AI can strengthen growth. Armitage also flagged investor unease over UK borrowing expectations, citing Andy Burnham’s Labour conference speech and risks from sticky, energy-driven inflation.
