Short-Dated Quality Bonds Could Gain If Markets Cut Rate-Rise Expectations -- Market Talk

1503 GMT - Short-dated quality bonds could benefit if investors scale back their expectations of central bank interest-rate rises in the coming months, UBS Global Wealth Management strategists say in a note. Current market pricing for central bank rate rises looks too aggressive, the strategists say. Markets price in a total of 24 basis points of Fed rate rises in 2026, and a total of 27 bps of BOE rate increases by year end, LSEG data show. If economic data continue to come in weaker than expected, markets could reduce rate-rise expectations, enabling short-term bond yields to fall, they say. (miriam.mukuru@wsj.com)

(END) Dow Jones Newswires

August 19, 2026 11:03 ET (15:03 GMT)