Switzerland's Dario Messi of Baosheng said in a report that fiscal dynamics continue to affect the global bond market, but their current impact on the yield curves of major government bonds varies. “Essentially, the 'initial fiscal shock' is still reverberating, but its intensity will lessen over time and distance,” the fixed income executive said. He said that in the US, although the deficit is still unsustainable, short-term financing and the Federal Reserve's interest rate cuts have relieved the upward pressure on yields. A major shift in Germany's fiscal policy last year boosted interest rates, and interest rates in Japan have also risen sharply recently. He said that in terms of long-term strategy, Switzerland's Baosheng currently does not advocate a major deviation, but instead favors slightly overallocating the US dollar and euro fixed income portfolios for a long period of time.

Switzerland's Dario Messi of Baosheng said in a report that fiscal dynamics continue to affect the global bond market, but their current impact on the yield curves of major government bonds varies. “Essentially, the 'initial fiscal shock' is still reverberating, but its intensity will lessen over time and distance,” the fixed income executive said. He said that in the US, although the deficit is still unsustainable, short-term financing and the Federal Reserve's interest rate cuts have relieved the upward pressure on yields. A major shift in Germany's fiscal policy last year boosted interest rates, and interest rates in Japan have also risen sharply recently. He said that in terms of long-term strategy, Switzerland's Baosheng currently does not advocate a major deviation, but instead favors slightly overallocating the US dollar and euro fixed income portfolios for a long period of time.