Global Bonds Slide Once Again as Inflation Curbs Rate-Cut Hopes
- Inflation remains a problem, keeping central banks on guard
- US swaps traders are now pricing in only one Fed 2024 rate cut
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Global bond investors are coming to terms with the likelihood that interest rates are going to stay high for the foreseeable future.
From the US and Germany to Australia and Japan, the past two weeks have been punishing for investors who have clung to hopes for rolling rate cuts this year from the world’s biggest central banks. The reality is, inflation has yet to be fully tamed, and that’s put central banks on guard and left bondholders with losses.