According to Jinshi, Societe Generale interest rate strategists said that the current sharp rise in global bond prices and the increase in expectations for interest rate cuts indicate that investors are nervous about a more substantial economic slowdown. However, they believe that this reaction may be a bit excessive.

Recent data have done little to justify the unease, the strategists said in a note. However, they said the momentum will be hard to unwind.

They remain neutral on bonds and continue to favor trades with steeper yield curves.