Bond Markets Face Challenges as Debt Issuance and Demand for Bonds Increase

Central banks in the developed world are facing a tsunami of government debt as bond yields rise and investor demand for bonds becomes more fickle. The Federal Reserve, the European Central Bank, and the Bank of England are accelerating the reduction of their bond holdings, potentially leading to a difficult year for bond yields in 2024. Meanwhile, Hungary's central bank is expected to maintain the pace of monetary easing by cutting interest rates, with a cautious approach due to government pressure and the need to provide positive real interest rates to investors.