Global Bond Markets Under Pressure Amid Interest Rate Speculations

The global bond markets are experiencing pressure due to renewed expectations of interest rate hikes. According to Ming Pao, U.S. Federal Reserve Vice Chair Michelle Bowman has advocated for three rate cuts within the year, despite inflation concerns prompting expectations of rate increases. The yield on the UK 10-year bonds has surpassed 5%, while the U.S. 2-year bond yield is nearing 4%. The CME Group's FedWatch tool indicated that the probability of a rate hike in October briefly rose to 50% last Friday. Investors are shifting funds towards the U.S. dollar and Swiss franc, causing the U.S. Dollar Index to approach the 100 level, while non-U.S. currencies face pressure. The Swiss franc alone has risen by 0.91%. The European Central Bank has signaled the possibility of a rate hike in April. Gold prices have fallen below $4,500, experiencing a weekly decline of over 9%.