Unpriced Food Inflation Threatens Volatile Bond Market

Bond markets have largely priced in the negative effects of rising energy costs and geopolitical tensions, with investors already anticipating fewer interest rate cuts and potential hikes in the US and Europe. However, Fixed Income Fund Manager Marie-Anne Allier warns that food inflation poses an unpriced risk that could destabilize bond markets over the next six to twelve months, driven by adverse weather, Ukraine's grain export disruptions, and El Niño impacts.