This may reflect an expectation that the adverse effects on growth for the industrial countries will inhibit any lasting inflation impact, but is also consistent with the idea that neither growth nor inflation may be affected by very much or for very long.
Change in US 10-year Government Bond Yield 1 year into oil price rise Beginning of oil price rise  Change in bond yield (bps)  September 1973  +104  December 1978  +118  June 1990  –19  February 1999  +113  October 2003  –28  Source: US Federal Reserve, Global Financial Data  The latter view probably fits more easily with the fact that markets are demanding relatively little compensation for credit risk.