“Curves have been highly directional and that too has brought about a grab for yield, that perhaps also was driven by fairly significant shorts placed in the US market as seen in surveys,” said Martin Whetton, head of financial markets strategy at Westpac Banking Corporation.
Bloomberg Global Bond Index Hits Highest Since 2022
Despite the rebound, longer-dated bonds remain under pressure amid mounting fiscal risks. France’s premier has warned of a debt crisis as the government reels, while in the UK investors await Chancellor Rachel Reeves’s November plan to balance growth initiatives with spending restraint.
In Japan, Prime Minister Shigeru Ishiba’s decision to step down has fueled uncertainty, raising the prospect of a successor viewed as less committed to fiscal discipline.
