Apollo Global Management's chief economist, Torsten Slok, wrote on Tuesday that bond yields could peak next month. He cited multiple factors suggesting yields will reach their high point between now and early November, including an increased probability of some kind of resolution in the Middle East before the U.S. midterm elections on November 3.

Other signals include the release of more oil reserves by the United States and its European allies, which would further push down crude oil prices, while high interest rates are weighing on the real estate and automotive sectors.

Slok noted that 84% of global fixed-income assets currently yield more than 3%, compared with just 12% in January 2022. He stated that with yields at elevated levels across nearly the entire global bond market, any agreement or government measure capable of pushing oil prices lower would help ease upward pressure on interest rates.

David Rosenberg of Rosenberg Research in Toronto, who previously served as chief North American economist at Merrill Lynch, said pressure in the bond market eased on Tuesday as oil prices fell another 1% and European bond prices rose.

He noted that earlier in the day, the benchmark yield on Italian government bonds dropped 11 basis points to 4.52%, French government bond yields fell 10 basis points to 4.76%, and UK government bond yields retreated 6 basis points to 5.36%.