Economist: Global Bond Yields Rise, Reflecting Inflation to Remain High for Longer

Odaily Planet Daily News Anthony Willis, Senior Economist at Columbia Threadneedle Investments, stated in a report that financial conditions have tightened—a trend clearly visible in the global bond market, where yields are rising significantly. He pointed out that due to rising energy costs, market expectations are for inflation to remain high for a longer period, leading to an upward trend in bond yields across many developed markets. Willis said the European Central Bank is expected to take the lead in raising interest rates at its June meeting, followed by the Bank of England in July. He added: "As for the Federal Reserve, market expectations have undergone a dramatic shift this year, moving from expectations of aggressive rate cuts under new leadership to current market pricing that reflects rate hikes over the next 12-18 months." (Jin Shi)