According to Jin Shi data reports, as the U.S. employment data cools, the market expects the Federal Reserve to accelerate its easing pace, and the Bloomberg Global Aggregate Bond Index has risen by more than 20% since March 2022. Traders expect the Federal Reserve to lower interest rates next week, with some betting on a 50 basis point cut.
As inflation eases and labor market pressures intensify, central banks worldwide are cutting borrowing costs, leading to higher bond prices. The chief strategist at Westpac Banking Corporation stated that the yield curve is trending directionally, possibly driven by short positions in the U.S. market.
Despite the market rebound, long-term bonds are under pressure due to accumulating fiscal risks, with France, the UK, and Japan facing uncertainty in fiscal policy.