Capital Economics Asia-Pacific head Thomas Mathews said a less-hawkish-than-expected monetary stance and an unwind of AI froth 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 developed-marke

Capital Economics Asia-Pacific head Thomas Mathews said a less-hawkish-than-expected monetary stance and an unwind of AI froth 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 developed-market inflation does not justify the degree of tightening currently priced into money markets.