Global inflation concerns drive bond market volatility 🤔
Market risk sentiment has gone back and forth. After a strong recovery on Monday, the market changed the script again yesterday. Some U.S. data showed signs of re-accelerating inflation. Concerns about inflation and tightening policies resurfaced, pushing up the overall U.S. bond yield curve. In addition, a Bloomberg report stated that the Bank of Japan may consider raising its inflation forecasts for 2023 and 2024 at the next central bank meeting (October 31), causing the 10-year Japanese government bond yield to rise to a 10-year high, while the strong The German ZEW economic index results and the weakness of the 2-year German government bond auction also caused German short-term yields to rise by 9.5 basis points on the day.
