Sovereign bond yields not yet reached a summit - Reuters poll

By Hari Kishan BENGALURU (Reuters) - The latest turmoil in major sovereign debt markets is far from over as bond strategists in a Reuters poll expected yields to

stay elevated well into next year, with risks firmly skewed towards their moving higher than currently predicted. More than a decade of rock-bottom sovereign bond yields

came to an abrupt end earlier this year as major central banks, which kept them artificially subdued, dumped pandemic-era policies in pursuit of price stability which so far has

remained elusive. With inflation now running multiple times higher than major central bank targets, bond yields, along with policy rates, are unlikely to drop

significantly in the short- to medium-term. The Sept. 12-19 Reuters poll of over 40 fixed income strategists and economists showed major sovereign bond yields trading

near current levels in one, three, six and 12 months from now. However, given the backdrop of stubbornly high inflation, the bias was clearly for yields to move higher.

An overwhelming 86% of strategists, 38 of 44, said that was the risk to their forecasts. The U.S. Federal Reserve, which sets the rate for the cost of capital globally by

default, was forecast to go for a third consecutive jumbo 75 basis point hike on Wednesday, with a one in five chance of a bigger 100 basis point hike. [ECILT/US] "A

hawkish Fed keeps our core rates strategy unchanged: stay underweight front-end and lean, long back-end with increased risks of a hard landing," noted Mark Cabana, head of U.S.

rates strategy at Bank of America Securities.