FED PIVOT FLAGS HIGHER BOND VOLATILITY Julius Baer’s Dario Messi says the Fed’s shift toward data dependence and a tighter 2% inflation focus will increase bond-market volatility, especially in short-dated Treasurys. Markets are pricing about 38bps of hikes by year-end, with rising sensitivity to economic data rather than Fed meetings. Longer-dated yields remain more anchored by growth expectations, with limited upside risk and potential downside toward 4.30–4.40% on the 10-year.(*Walter Bloomberg)