BNP Paribas: Inflation Matters More Than Fiscal Factors for Bond Yields
2026-07-20 05:23:38
According to Jin10, the chief investment officer of the core investment division at AXA Investment Managers, part of BNP Paribas Asset Management, said inflation has a greater impact on bond yields than fiscal considerations. Governments can at least try to control debt issuance, but central banks have found it difficult to contain inflation since the global financial crisis, and monetary policy has been impaired; this does not downplay deficit and debt concerns, and profligate fiscal policy always risks angering bond vigilantes. If investors buying bonds are confident in preserving the real value of their investment, a high level of government bond supply will be easier to absorb.
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