Citigroup: Next week's "Super Central Bank Week" may exacerbate bond market volatility.

On March 13, Citigroup interest rate strategist Jamie Searle stated in a report that short-term government bond yields are likely to remain fragile until it becomes clear when the Strait of Hormuz might reopen. Searle pointed out that next week's policy meetings of major central banks could exacerbate market volatility. Searle said the European Central Bank (ECB) may open the door to a preemptive rate hike, while the Bank of England may be cautious in its rhetoric and retain the option to resume rate cuts later. "The basic scenario is that uncertainty provides a reason for the ECB to hold rates steady, but the possibility of several preemptive rate hikes cannot be ruled out," Searle said. (Jinshi)