The Fed may cut interest rates, global bond index rises by more than 20%

According to Jinshi data, as U.S. employment data cools down, the market expects the Federal Reserve to accelerate the pace of easing, and the Bloomberg Global Comprehensive Bond Index has risen by more than 20% since March 2022. Traders expect the Fed to cut interest rates next week, partially betting on 50 basis points. As inflation falls and labor market pressure intensifies, central banks in various countries have lowered lending costs and bond prices have risen. Westpac's strategy director said the directionalization of the yield curve may be driven by short positions in the U.S. market. Despite the market rebound, long-term bonds are under pressure due to the accumulation of fiscal risks, and France, the United Kingdom and Japan face fiscal policy uncertainty.