JPMorgan’s Bob Michele says bond market has reached “maximum pain”

JPMorgan Asset Management’s global head of fixed income, Bob Michele, said the bond market has reached a point of “maximum pain” as investors confront a sharp shift in the interest-rate outlook.

Michele made the comments on Bloomberg Surveillance: The Fed Decides, where he said “the dominoes are starting to fall.” His assessment came as markets weighed the Federal Reserve’s latest policy decision and the outlook for inflation, growth and government borrowing.

Michele’s warning centers on the pressure created when higher yields spread across fixed-income markets. Rising borrowing costs can weaken demand for bonds, increase financing expenses for governments and companies, and force investors to reassess the value of assets priced against interest rates.

The comments highlight the tension facing bond investors as the Fed balances economic activity against renewed inflation risks. Markets are watching whether officials signal further rate increases and how long policy will remain restrictive.

Michele’s remarks add to the debate over whether the latest move in yields represents a temporary adjustment or a broader repricing across global fixed income.