Lower for longer

JPM sees yields moving lower from here. Main bullets are: 1. Despite the rise in oil prices possibly pushing inflation, JPM believe current rising bond yields are unsustainable. 2. Historically, oil and bond yields have had a positive correlation. The recent oil price surge is mainly due to supply reasons, potentially leading to deflation. 3. Past eight Fed tightening cycles show bond yields decrease post the final hike, by an average of 100bp. 4. Current bond yields are trading above both inflation forwards and expected levels.