Colombian Thread Investment Company’s senior economist, Anthony Willis, has reported that financial conditions have tightened, as evidenced by significant increases in global bond market yields. According to Odaily, Willis highlighted that rising energy costs have led markets to anticipate prolonged high inflation, causing bond yields in many developed markets to trend upwards. He predicts 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 in July. Regarding the U.S. Federal Reserve, Willis noted a significant shift in market expectations this year, moving from anticipated aggressive rate cuts under new leadership to current market pricing reflecting potential rate hikes over the next 12 to 18 months.
