BMO’s Davis Expects Heightened Bond Volatility in 2024
01 mins 12 secs
The new year could be a very volatile one for fixed income. According to BMO, global asset management's head of fixed income and money markets, Earl Davis. Davis tells Bloomberg TV why he thinks we could see the 10 year revisit its highs, as well as its lows from this year within just the first six months of 2024. Part with, I think, 2023 is going to be an extremely informative year for 2024 yields. And what I mean is if you look at the low close on 10 year yields, it's roughly 350. If you look at the high close on 10 year yields, it's roughly 5%. We're of the belief that this kind of volatility is going to continue. We're going to test both the lows, 350. And we think that's a Q1 story. And the highs, 5%. And we think that's a Q2 story. A lot of the drivers for higher rates haven't left the market, right? We still have supply. We still have inflation. I've been in the market since 1994. And I know at any given point in time, the market looks at one thing. So now we're looking at the one thing that gets us to 350. And then it'll revert to the other issues that haven't been solved.
TranscriptEarl Davis, Head of Fixed Income and Money Markets at BMO Global Asset Management, tells Bloomberg TV when and why he thinks the 10-year yield will retest both its 2023 highs and lows in 2024.
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