On May 19, Anthony Willis, a senior economist at Columbia Threadneedle Investments, reported that financial conditions have tightened, particularly evident in the global bond market where yields are rising significantly. According to Jin10, Willis noted that due to rising energy costs, market expectations are that inflation will remain high for a longer period, leading to an upward trend in bond yields across many developed markets. Willis forecasts that the European Central Bank will take the lead in raising interest rates at its June meeting, with the Bank of England expected to follow suit in July. He stated, “Regarding the Federal Reserve, market expectations have shifted significantly this year, moving from aggressive rate cut expectations under new leadership to current market pricing reflecting potential rate hikes over the next 12-18 months.”
