Global bonds reverse gains

INVESTORS have drawn out the “higher-for-longer” sentiment and trimmed their interest rate cut outlook, following the robust non-farm payroll data last Friday.

Over the week, a set of upside surprise US economic data alongside a chorus of Federal Reserve (Fed) officials’ speeches, which were slanted towards the hawkish side, further nudged investors to reprice on their rate cut outlook, effectively pushing the US Treasury (UST) yields weaker and the US dollar higher.