Monthly Comment | Fixed Income
The month of April has shrugged off any “strong seasonality” argument. Rate hike bets have increased to 4x 50bps so that the Fed may reach the neutral rate as soon as September 2022 (…to reassess the next steps…) while inflation and geopolitical pressures did not abate. Therefore, Global Bond markets have experienced a sharp repricing throughout the month. As written in our “weekly” letter, we recommend staying cautious but reckon that the market might hit “underweight-overhedged” soon.