Insights

Weekly Market Commentary – 16th October 2026

16 October 2026

This week provided some respite for bonds. Despite a strong US inflation reading, comments by Federal Reserve chair Kevin Warsh cooled expectations of a US rate hike this month. Central bankers in the UK and Europe also sounded less inclined to raise rates. Bank of England Governor Andrew Bailey and European Central Bank president Christine Lagarde both said there are no signs of inflation becoming embedded in consumer or business expectations, or in wage negotiations. That helped bonds recover some of their steep losses of recent weeks.