Volatility in bonds

UOB Asset Management chief executive officer Lim Suet Ling

WHILE the bond market has been relatively stable in recent weeks since recovering from a major selloff in the first quarter of the year, pressure is seen rising again towards the end of 2021, as investors price-in the risk of tapering and interest rate hikes by the US Federal Reserve (Fed).

Locally, the expected increase in bond issuances will also cause volatility in the market.