Bond Market Factoring in Growth Resilience, Fiscal Policy, Inflation

Dow Jones
Sep 25

0458 GMT - The bond market is currently factoring in several elements simultaneously, Neuberger's Rob Dishner says in a note. "On one hand, oil prices remain persistently high," the senior fixed income portfolio manager says. "On the other, the growth outlook is shifting: growth is now viewed as stable-or even robust-barring evidence to the contrary," he says. This marks a departure from the previous consensus, which held that interest-rate levels and commodity prices would weigh on growth, he says. The recent rise in bond yields may reflect growth resilience more than fears of inflation, he says, adding that concerns regarding fiscal policy also continue to weigh on fixed-income markets.

 

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