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JPMs Marko Kolanovic is still bullish bonds:
We have maintained the view that the high yields achieved in the fourth quarter of last year was likely the cheaps for the cycle, and we looked for a developing and multi-month bullish reversal pattern into 2023 to eventually give way to a new bull market. That view remains unchanged, with multiple points on the curve challenging and even richening through that pattern resistance.
While we expect an eventual release to lower yields and sustained breaks through pattern resistance by midyear, we think yields can be set for more backing and filling over the near-term.
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About the author
David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific's leading geo-politics and economics portal.
He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.
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