On November 2, Thomas Mathews, Head of Asia-Pacific Markets at Capital Economics, noted in a report that a less hawkish-than-expected monetary policy stance and the bursting of the AI bubble will further boost the bond market over time. Mathews said the bond market extended its rally last week, as major central banks held interest rates steady as expected—a move that did not undermine market optimism. He believes central banks will continue to provide a favorable environment for bond market gains. The Federal Reserve, the European Central Bank, and the Bank of Japan may raise interest rates soon, while the Bank of England and the Reserve Bank of Australia are likely to raise rates this week. However, he emphasized that the inflation outlook in developed markets is not sufficient to support the magnitude of rate hikes implied by money market pricing.