Bond Traders Risk Being Wrongfooted by 2022 Playbook, UBS Warns

UBS chief strategist Bhanu Baweja warns traders risk being wrongfooted by bets that major central banks will move in unison to respond to the threat of a prolonged war in Iran. He implies such consensus expectations could misprice monetary policy and interest-rate responses, raising the potential for volatility across FX, rates and energy markets.

Analysis

UBS chief strategist Bhanu Baweja warns traders risk being wrongfooted by bets that major central banks will move in unison to respond to the threat of a prolonged war in Iran. He implies such consensus expectations could misprice monetary policy and interest-rate responses, raising the potential for volatility across FX, rates and energy markets.