Another bond market sell-off likely in the next three months – Reuters poll

The recent turmoil in the global bond market is far from over, as the investors brace for another sell-off in the next three months, the latest Reuters poll of more than 70 fixed-income strategists showed on Friday.

Key quotes

“Fixed-income strategists pointed to only a marginal rise in major sovereign bond yields over the coming year, driven largely by global central banks’ pledges to keep policy loose for years to come.”

“34 of 45 strategists in response to an additional question said another sell-off in bond markets in the next three months was likely, including four who said it was very likely.”

“When asked to rate current inflation expectations priced-in by global bond markets, 24 of 45 strategists said they were about right. Fifteen respondents said they were too high and six said they were too low.”

“When asked what Treasury yield level would trigger the Fed to adopt yield-curve control, the consensus range was 2.25-2.50%, about 50-75 basis points above Thursday’s more than one-year high.”