Bond Market Is Extremely Vulnerable at Current Juncture, Says M&G’s Lonergan

The transcript discusses the vulnerability of the bond market, highlighting issues such as increased volatility, market liquidity deterioration, and investor positioning. It emphasizes the tendency of market participants to overreact to economic data due to memories of the 2008 financial crisis. The discussion also covers the nature of price action in bond markets, driven by investor psychology and market momentum. The potential for significant market reversals without fundamental changes is explored, with a focus on factors like monetary policy expectations and global bond yield movements.

What role do investor psychology and market momentum play in bond market fluctuations?

Discuss the implications of a potential reversal in global bond yields.