Capital Economics Asia-Pacific head Thomas Mathews said a
less-hawkish-than-expected monetary stance and an unwind of AI frost will
further support bonds over time. Bonds extended gains last week after major
central banks kept rates unchanged, leaving market optimism intact; Mathews
expects central banks to continue providing a favorable backdrop for the rally.
He added the Fed, ECB and BOJ could still tighten later while the BoE and RBA
are likely to hike this week, but stressed-market inflation does not
justify the degree of tightening currently priced into money markets.
