Bond markets stabilized after a sharp sell-off in Japanese and U.S. debt, but fund managers remain cautious. Experts from BlackRock and Brandywine Global see persistent dangers, citing volatility and shifting central bank policies that could unsettle investors again.

The recent turmoil stemmed from rising yields and fears over inflation and fiscal deficits. This environment pressures portfolio returns and challenges risk models, especially for fixed-income assets that have been a bedrock for decades. Investors now question duration and credit strategies.

Looking ahead, the focus shifts to upcoming central bank meetings and economic data releases. Any hawkish signals could reignite selling pressure. Portfolio managers will likely favor shorter-duration bonds and diversification, while awaiting clearer signals on the path for interest rates and global growth.