Global investors temper bond yield expectations amid record rate cuts optimism

BofA Global Fund Manager survey

Global fund managers turned less bullish on the bond market in January, as record optimism for interest rate cuts drove them to pile into Magnificent Seven stocks and long-duration tech.

According to the latest Bank of America Global Fund Manager survey, investors have scaled back expectations on bond yields, following the 100bps rally in long-term rates over the past two months. The survey found that 55% of respondents expect lower bond yields over the next 12 months, down slightly from a record 62% in December 2023, while expectations for lower short-term rates reached a record-high this month.  Global investors remain set on Goldilocks soft landing despite bearish stance Over two-thirds think the Federal Reserve will be the most important driver of bond yields i...