European rates: Inflation & AI waves collide

Markets have been anything but calm lately. Inflation shocks, surging energy prices and the AI narrative have collided to deliver one of the most dramatic periods in rates markets in years, forcing investors to rethink interest‑rate paths in real time.

In Europe and the UK, that reassessment has been especially stark. Expectations for rate cuts have rapidly flipped to pricing further hikes, with the Bank of England at the centre of the storm. Gilt yields have surged to levels last seen during the 2008 Global Financial Crisis, while German yields have climbed to post‑sovereign‑crisis highs. What began as an energy shock has quickly morphed into a bond‑market shock, lifting borrowing costs for households and businesses alike and delivering a renewed wave of financial whiplash for mortgage holders.

Against this already fragile backdrop, markets were whipsawed yet again by a single social‑media post, triggering sharp reversals across rates, equities and commodities in the space of hours.

So how do you trade through volatility of this magnitude? Which signals still matter when headlines dominate price action? And how do inflation risks, AI‑driven narratives and crowded positioning interact in today’s market structure?

To make sense of it all, Patrick Coffey is joined by Hamza Hoummady, Head of EMEA Rates Trading, for a wide‑ranging discussion on what is driving today’s unprecedented moves, how this episode compares with past crises, and what investors should be watching next.

Listeners can hear more on this topic:

•Episode 23: A bullish view on US equities

•Episode 22: Processing uncertainty in real time

•Episode 16: Forces shaping markets in 2026

Clients can read more on Barclays Live:

•Recovery delayed redux

•On hold, holding on

•Ides of March

•Dueling mandates

Important Content Disclosures

Important non-Research Content Disclosures

Det här avsnittet är hämtat från ett öppet RSS-flöde och publiceras inte av Podme. Det kan innehålla reklam.

Avsnitt(33)

Decoding the bond sell-off

Global bond yields have been rising sharply, with long-term yields breaking higher across multiple markets - pushing US 30‑year yields above 5%.The sell-off was initially triggered by energy-linked i...

19 Maj 11min

Inflation crosscurrents: Energy vs AI

Markets are facing two competing inflation stories at the same time: a near‑term energy shock pushing inflation risks higher, and the possibility that AI acts as a medium to longer-run disinflationary...

12 Maj 12min

Jet fuel shortage: Holidays at risk?

Jet fuel shortages linked to the continuing Iran war are dominating headlines, raising questions about whether this poses a genuine risk to global travel or whether markets are getting ahead of the re...

5 Maj 10min

Credit: the signals markets can’t ignore

Credit markets often process stress before other parts of the market are able to. During periods of volatility, the signals they send can help investors distinguish between shocks that are likely to p...

28 Apr 8min

Robots deliver dinner and profits

Food delivery is changing fast, with last-mile autonomous hardware being developed and deployed at pace. In this episode of the Barclays Brief, Patrick Coffey is joined by Guillaume Galland to explore...

21 Apr 10min

Prediction markets: A new market signal

Prediction markets are suddenly top of mind for a range of people. From elections and sporting events to pop culture and breaking news, probabilities are flashing across screens in real time. What sta...

14 Apr 10min

The quantum computing moment

Quantum computing has long been viewed as a future technology. Now, it’s poised to overtake classical computing systems in specific useful tasks in the next 12-24 months.In this episode of Barclays Br...

7 Apr 12min

The cusp of a capex supercycle

In recent months, market narratives have been dominated by geopolitical shocks, energy volatility and higher interest rates. But step back, and a much bigger story is coming into focus.Advanced econom...

31 Mars 13min