Daniel Morris, chief market strategist at BNP Paribas Asset Management, said
global government bond yields have risen broadly in sync, prompting investors to
seek drivers. Most attribute the move to inflation higher and concerns over
government debt sustainability, but August’s thin market liquidity may also be
contributing. He noted oil-driven inflation linked to the Middle East conflict
was a key earlier driver, though oil’s importance has faded in recent weeks.
Given reduced liquidity, Morris cautioned against over-interpreting current
moves, saying yields could retrace as trading volumes normalize.
