Marketplace All-in-One What's going on with the bond market?
Mar 3, 2026
David Whiston, a Morningstar equity analyst who focuses on autos, and Stephen Brown, Capital Economics’ deputy chief North America economist, join the conversation. They discuss why bond yields are rising despite safe-haven demand and how inflation and oil shocks shape investor behavior. They also cover the EPA reversal and which carmakers might gain or lose in the short and long run.
AI Snips
Chapters
Transcript
Episode notes
Bond Yields Rise Because Inflation Risk Trumps Safe-Haven Demand
- Bond yields are rising even as geopolitical risk increases because investors fear higher inflation from spiking oil prices.
- Stephen Brown explains the Iran-related shock lifted oil and could keep the Fed from cutting rates, so investors demand higher yields to compensate.
Oil Near $100 Could Add A Full Percentage Point To Inflation
- A sustained rise to around $100 per barrel could add about one percentage point to U.S. inflation.
- Brown notes the oil market started with oversupply, but higher prices from the conflict could materially change inflation dynamics and Fed policy.
EPA Repeal Frees Automakers Now But Risks Long-Term EV Competitiveness
- Repealing the EPA endangerment finding removes the regulatory basis for U.S. tailpipe greenhouse gas rules and compliance credit markets.
- David Whiston says that immediately eases pressure on makers of profitable trucks and SUVs but risks long-term competitiveness as EV adoption returns.