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.”