Mediolanum International Fund's head of fixed income said the difficult
bond-market environment may persist, but current yield levels are already too
high. "We expect central banks to take a less hawkish stance to ease the degree
of financial tightening priced by markets, which will push down long-term
yields." The firm remains constructive on government bonds given elevated
yields. It added the credit outlook depends on whether policymakers act too
slowly: "The longer yields stay high, the greater the pressure on credit."
