Fasten Your Seatbelt for More Interest Rate Volatility

T. Rowe Price
By April 1, 2021 12:13

Fasten Your Seatbelt for More Interest Rate Volatility

Fasten Your Seatbelt for More Interest Rate Volatility

Rising bond yields and interest rate volatility are expected to continue

Rising global bond yields and interest rate volatility have been dominant themes in fixed income markets so far this year. In our latest investment team meetings, we discussed how likely these trends are to continue—and the potential implications for bond markets and central bank policies if they do.

Key Insights

  • Sovereign bond curve steepening has further to run, with growth and inflation likely to accelerate over the coming months.
  • Interest rate volatility is rising but is, so far, concentrated in long‑dated maturities with little impact on risk markets.
  • Volatile interest rates are a concern for central banks and could drive some to introduce yield curve control to help smooth out fluctuations.

Asset Manager

Invest with confidence

T. Rowe Price is an independent investment management firm focused on helping clients meet their objectives and achieve their long-term financial goals. We offer a broad range of equity, fixed income and multi-asset strategies across multiple asset classes, regions, capitalisations, sectors and styles.

Website:www.troweprice.com

Michel van Mazijk
Relationship Manager
Tel: +31 20 333 6202
michel.van.mazijk@troweprice.com

Wim de Ruijter
Relationship Manager
Tel: +31 20 333 6204
wim.de.ruijter@troweprice.com

Manon Savelkouls
Relationship Manager
Tel: +31 20 333 6208
manon.savelkouls@troweprice.com

T. Rowe Price
By April 1, 2021 12:13

SEARCH