Why Are Bond Yields Falling While the Fed Is Hiking?

Investors fled AI stocks into Treasuries and pulled real yields lower, while oil kept a December hike priced.

By Dorian | ZMACRO Weekly | November 2, 2026

Brent rose almost 14% in October. Inflation accelerated. Fed officials kept another hike on the table.

And the 10-year Treasury yield fell 30 basis points over the month, while gold had its worst October since 2008.

The usual links between inflation, rates and gold broke at the same time last month, and this wee…