BlueBay CIO Says Worst of Bond Selloff May Be Over, Bullish on Short-Dated Debt

The call matters less as a market timing signal than as a sentiment marker from a large fixed income manager: after a year of pain, a CIO flagging the first optimistic stance on short-dated debt suggests the debate is shifting from how far rates rise to how long they stay there. Dowding credits the Fed's latest move with restoring confidence in its inflation-fighting credibility, which is the real variable to watch. Whether other large managers follow with similar positioning, or whether this proves a lonely early call, is the open question.