CCTV Script 20/05/26
– This is the script of CNBC's financial news report for China's CCTV on May 20, 2026.Overnight, multiple market participants told CNBC that inflation pressure in the United States is what is making bond investors uneasy. Recently, U.S. Treasury yields have continued to rise, which is also seen as the bond market warning about inflation risks. Investors are worried that inflation could reaccelerate, and there are several driving factors behind this concern. The first is oil prices.Analysts say bond investors are closely watching the impact of disruptions in the Strait of Hormuz on crude oil supplies. If Middle Eastern supply takes longer than expected to recover, upward pressure on oil prices could intensify further.Overnight, analysts at Goldman Sachs told CNBC that the bank's baseline forecast is for oil transportation in the Persian Gulf to largely return to normal by the end of June this year. Under that scenario, Brent crude could fall back to around $90 per barrel by the fourth quarter. However, Goldman warned that overall risks remain skewed to the upside.Daan StruyvenCo-Head of Global Commodities Research Goldman Sachs"Every month of delay in the supply normalization process is worth $10 of upside to prices by year end"In addition, some analysts point out that fiscal spending by governments around the world could also make inflation a long-term risk.Stephen Parker Co-head of Global Investment Strategy JPMorgan Private Bank"We don't think it's going away anytime soon. in a world where governments are going to be spending a lot of money through kind of fiscal stimulus, that's a world where the floor on inflation is likely going to be higher, and the volatility is going to be greater"Against the backdrop of rising inflation expectations, markets have recently begun adjusting their bets on Federal Reserve policy, increasingly believing that the Fed's next move is more likely to be a rate hike rather than a rate cut. One of the strongest voices expressing this view is veteran Wall Street strategist Ed Yardeni, who wrote in a report this week that the Federal Reserve is likely to keep rates unchanged at its June policy meeting, but could raise rates by 25 basis points in July.Ed Yardeni President Yardeni Research"the reason bond yields have gone up is because the perception is that the Fed is behind the curve on inflation, and the Fed has to moved to a tightening bias at the June meeting coming up in a few weeks, and then after that, I think they have to follow up and actually show that they're willing to raise rates and do it by 25 basis points."As for the future market outlook, a survey of global fund managers released Tuesday by Bank of America showed that 62% of respondents expect 30-year U.S. Treasury yields to rise to 6%, which would match the highest level since late 1999.Finally, BMO Capital Markets' head of U.S. rates strategy also warned that if 30-year Treasury yields rise to 5.25% in the coming weeks, U.S. equity valuations could face a sustained correction. We will continue to follow developments in both the U.S. stock and bond markets closely.
