Global Bond Markets Likely to Remain Under Pressure
Dow Jones
Yesterday
0514 GMT - The global government bond market is likely to remain under pressure in the short term, as no change expected for either energy prices or economic data, Erste Group analysts say in a note. In their base scenario, however, falling energy prices in 2027 will lead to declining inflation expectations. "This should favor falling yields, particularly for shorter maturities, as markets are likely to price in lower future policy rates," they say. On the long end of the curve, they see only limited downside potential. "Robust economic prospects, a high volume of government bond issuance, and the influence of U.S. yields are likely to keep long-term yields at elevated levels."
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