JPMorgan is of the opinion that the global bond rally, which started after the inflation data in the USA, will continue.
JPMorgan Asset Management Fixed Income CIO Bob Michele thinks the rally in global bonds has just begun after the June CPI data released in the US this week.
Preparing for a rise in global bond prices since the end of last year, Michele has been buying high-grade bonds and emerging market bonds.
Defending that the Fed has gone too far in interest rate hikes, Michele also maintains the expectation that the US economy will enter a recession for a long time.
Michele, who has been working in the sector for more than 40 years, pointed out that the US yield curve has been deeply inverted and predicted that the Fed would have to cut interest rates towards the end of the year. “More and more indicators are reaching levels you can only see in recessions. We make purchases with every decrease in bonds,” said Michele, adding, “The significant tightening of the Central Bank is starting to have a strong effect on the real economy.”