Fabba Bank: Inflation has a greater impact on bond yields than fiscal factors

On 20 July, the Chief Investment Officer of the core investment department of the Ansein Investment Management, under the flag of asset management in Paris, stated that the impact of inflation on bond yields was more important than fiscal considerations. Governments can at least try to control debt, but since the global financial crisis, central banks have found it difficult to control inflation and monetary policy has suffered. This is not to dilute deficit and debt considerations; volatile fiscal policies are always at risk of pissing off bond guards. If investors who buy bonds are confident in maintaining the real value of their investments, a high level of government bond supply will be more easily absorbed. Kim Xian