JP Morgan: Global bond market to improve after worst ‎performance in 3 decades

JP Morgan Bank revealed that it expected the global bond market to witness an improvement of about $1 trillion in 2023 in the equation of supply and demand, which will contribute to reducing returns on it.

According to Al-Arabiya, the bank attributed this to speculation that the global bond supply will decline by $1.6 trillion, exceeding the drop in demand of about $700 billion.

The year 2022 witnessed the emergence of the first bear market for bonds in 30 years, with central banks heading to raise interest rates, which led to higher returns on them and increased volatility in the market.

Debt markets are heading to record a decline of about 16% this year, despite their rise of about 5% in November, amid the attractiveness of rising returns and expectations that the Federal Reserve will begin to ease the rate of interest hikes.