COMMERZBANK rate strategist Hauke Siemssen said in a report that elevated oil
prices and intensifying fiscal worries keep the bond market fragile. Global bond
markets still face risk, with yield curves across maturities testing multi-year
highs. Although this morning's consolidation was encouraging, Siemssen said a
durable market reversal appears unlikely because the underlying drivers have no
simple solutions. He expects this week's US PCE inflation print and policy
signals from the annual Jackson Hole symposium to provide fresh guidance and
should attract attention.