Citi: Next Week's "Super Central Bank Week" May Intensify Bond Market Volatility

Golden Ten Data reported on March 13 that Jamie Searle, a Citi rates strategist, stated in a report that until it becomes clear when the Strait of Hormuz might reopen, short-term government bond yields may remain fragile. Searle pointed out that major central banks will hold policy meetings next week, which could intensify market volatility. Searle said that the European Central Bank may leave the door open for precautionary rate hikes, while the Bank of England may be cautious in its wording and retain the option to resume rate cuts later. "The baseline scenario is that uncertainty gives the European Central Bank a reason to stay put, but several precautionary rate hikes cannot be ruled out," Searle said.