Bond market volatility expected to persist in the coming weeks
Bond market volatility expected to persist in the coming weeks
Updated October 13, 2023 at 3:42 a.m. ET
07:49 GMT – Bond market volatility is expected to persist in the coming weeks as investors digest the latest economic data and try to gauge the direction of monetary policy, said Sebastiano Chiodino, head of fixed income at Generali Insurance Asset Management, in a note. “(The) Fed and ECB are signaling that they may be at the end of their hiking cycles,” Chiodino said. “But policymakers have yet to assess the exact landing point for monetary tightening, amid conflicting headlines and still ambiguous macroeconomic landscapes.” In the short term, bond markets will likely be influenced by “headlines,” while in the medium term, bond yields should trend lower, Chiodino says. (miriam.mukuru@wsj.com)
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