JPMorgan Asset Management CIO Michele: Our team has bought long-dated government bonds in the US, Japan, and Australia, believing the bond market has reached an "extreme pain" tipping point.
JPMorgan Asset Management CIO Bob Michele stated that his team has started buying long-dated government bonds in the U.S., Japan, and Australia, believing current prices are "simply too cheap." In an interview on Wednesday, Michele said that multiple bullish factors are converging, including policy actions from the European Central Bank, the Federal Reserve, and the Bank of Japan that will support the bond market. He also cited the upcoming midterm elections potentially stabilizing the Middle East situation, and U.S. Treasury Secretary Scott Bessent's buyback program as a key stabilizing force for the market, with room for further increases. He believes the sell-off in long-dated bonds is excessive, and signs of a yield peak are emerging, adding that the current Fed rate hike will help policymakers reassert control over the situation.
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