Bond market volatility offers opportunities too: Schroders

Singapore

INVESTORS should watch for opportunities thrown up by volatility in the bond markets this year - particularly in Asia - on the back of changing US politics, and stronger growth from the world's largest economy, said a report by Schroders.

Amid expectations of better economic growth, and ensuring higher inflation, global bond yields are due to rise, the report said. The yield curve will steepen due to the greater policy uncertainty as well.

A yield curve steepens when the gap between yields on short-term bonds and long-term bonds increases, usually indicating that yields on long-term bonds a…