Global Bond Yields Rise Amid Inflation Persistence; ECB Seen Raising Rates in June

According to Anthony Willis, senior economist at Columbia Thread Investment Company, global bond yields are rising significantly as markets expect inflation to remain elevated for an extended period due to higher energy costs. Willis noted that developed market bond yields are trending upward across the board. The economist anticipates the European Central Bank will be the first to raise rates at its June meeting, followed by the Bank of England in July. Regarding the U.S. Federal Reserve, Willis stated that market expectations have shifted dramatically this year from anticipated aggressive rate cuts under new leadership to current pricing reflecting potential interest rate hikes over the next 12-18 months, according to Jin10.