RBC BlueBay’s Mark Dowding assesses the sharp rise in global bond yields and argues that recent US rate moves may have exceeded medium-term fair value.
- Markets now price roughly 100bp of additional Fed hikes, despite inflation swaps not supporting permanently elevated inflation.
- In Europe, lower gas consumption and stabilising energy prices could allow inflation to peak before easing, limiting the need for prolonged ECB tightening.
- With global yields at multi-decade highs, RBC BlueBay sees improving forward return potential from duration.
Explore the full report for a broader assessment of global rates, European spreads and fixed-income positioning.
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