Global Bond Yields Rise as Markets Expect Inflation to Persist Longer, ECB to Hike in June

According to Anthony Willis, a senior economist at Columbia Thread Investments, global bond yields are rising significantly as financial conditions tighten across debt markets. Markets now expect inflation to remain elevated for an extended period due to higher energy costs. Willis anticipates the European Central Bank will be first to raise rates at its June meeting, followed by the Bank of England in July. On the U.S. Federal Reserve, Willis noted that market expectations have shifted dramatically this year—from expecting aggressive rate cuts under new leadership to currently pricing in potential rate hikes over the next 12-18 months.