Expect Worse Before It Gets Better for Bond Markets -- Market Talk

0507 GMT - The bond market outlook could get worse before it gets better, Allianz Research analysts say in a note. "While current yield levels look attractive, the negative feedback loop between higher rates and debt sustainability could trigger self-fulfilling prophecies in several countries," they say, pointing to France, Italy, U.K., Japan and the U.S. They estimate temporary yield spikes of up to 70 basis points before central banks would weigh in. "But overall, we consider risks as balanced as any demand side shock would rapidly lower yields." (emese.bartha@wsj.com)

(END) Dow Jones Newswires

September 02, 2026 01:07 ET (05:07 GMT)