Barrett Flags Bond Market as ‘One to Watch’ Amid Rate-Cut Pressure

David Barrett, CEO of EBC Financial Group (UK) Ltd, shares his market outlook in the inaugural episode of Pulse 360°, highlighting the bond market as a key area to watch amid growing pressure for rate cuts.

CEO of EBC Financial Group (UK) Ltd. flags risk of low volatility complacency as traders keep buying dips

UNITED KINGDOM, August 13, 2025 /EINPresswire.com/ -- Global markets have shown an “unprecedented ability” to shrug off geopolitical flare-ups and policy shocks, but that confidence could mask deeper risks, according to David Barrett, CEO of EBC Financial Group (UK) Ltd.

Speaking in the inaugural episode of EBC’s new Pulse 360° podcast, Barrett described 2025’s first half as “absolute chaos” in terms of the range and scale of market events, yet noted that traders have consistently looked past them – from tariff announcements to conflicts – in favour of buying dips.

“Volatility has been sold every time it’s spiked, but in my view, it’s too low, and that can breed dangerous complacency,” Barrett said in the episode. “Markets are assuming no news is good news, but history tells us dislocations come when you least expect them.”

He added that markets are not just ignoring risks – they are forgetting them almost instantly. “That kind of short memory works until a real repricing event forces everyone to remember at once,” Barrett warned.

Flows Shift, Gold Holds, Bond Market in Focus

Barrett pointed to early signs of capital rotation, with flows moving into certain Latin American and Asian markets while some investors trim exposure to US tech. He also highlighted sustained central bank purchases as a driver of gold’s record highs.

“Gold isn’t just a retail or ETF trade right now – central banks are still buying, and that’s keeping a strong bid under the market,” he said.

The bond market, he added, will be one to watch into Q4, with long-end yields staying elevated while political pressure builds for rate cuts. “If a ‘shadow Fed governor’ is appointed with a clear mandate to ease, the shape of the yield curve could change sharply,” Barrett said.

Diverging Positioning Across Market Players

Barrett outlined three clear divides in current positioning: retail traders “all in” and buying every dip, hedge funds scrambling to cover shorts, and large institutional “real money” funds staying largely on the sidelines.

“Retail has won for now,” Barrett said, “but that kind of one-way conviction only works until it doesn’t.”

Barrett’s remarks were part of the first episode of Pulse 360°, a new EBC podcast featuring market analysis and trading perspectives from the firm’s global team. Subsequent episodes include a three-part technical series from Joseph Auxano, a veteran DiNapoli expert and technical strategist on chart structure and volatility, with future segments from Mabyanine Phiri, EBC’s Marketing Manager for Africa, on African markets, and Samuel Hertz, EBC’s Head of APAC on Asia-Pacific capital flows.

Disclaimer: This article reflects the observations of EBC Financial Group and all its global entities. It is not financial or investment advice. Trading in commodities and foreign exchange (FX) involves significant risk of loss, potentially exceeding your initial investment. Consult a qualified financial advisor before making any trading or investment decisions, as EBC Financial Group and its entities are not liable for any damages arising from reliance on this information.

Pulse 360° is now available on Spotify, with new episodes released on a rolling basis. Tune in here.

For more insights and market commentary, visit www.ebc.com.

About EBC Financial Group  

Founded in London’s esteemed financial district, EBC Financial Group (EBC) is a global brand known for its expertise in financial brokerage and asset management. Through its regulated entities operating across major financial jurisdictions—including the UK, Australia, the Cayman Islands, Mauritius, and others—EBC enables retail, professional, and institutional investors to access a wide range of global markets and trading opportunities, including currencies, commodities, shares, and indices. 

Recognised with multiple awards, EBC is committed to upholding ethical standards and these subsidiaries are licensed and regulated within their respective jurisdictions. EBC Financial Group (UK) Limited is regulated by the UK's Financial Conduct Authority (FCA); EBC Financial Group (Cayman) Limited is regulated by the Cayman Islands Monetary Authority (CIMA); EBC Financial Group (Australia) Pty Ltd, and EBC Asset Management Pty Ltd are regulated by Australia's Securities and Investments Commission (ASIC); EBC Financial (MU) Ltd is authorised and regulated by the Financial Services Commission Mauritius (FSC).   

At the core of EBC are a team of industry veterans with over 40 years of experience in major financial institutions. Having navigated key economic cycles from the Plaza Accord and 2015 Swiss franc crisis to the market upheavals of the COVID-19 pandemic. We foster a culture where integrity, respect, and client asset security are paramount, ensuring that every investor relationship is handled with the utmost seriousness it deserves.    

As the Official Foreign Exchange Partner of FC Barcelona, EBC provides specialised services across Asia, LATAM, the Middle East, Africa, and Oceania. Through its partnership with United to Beat Malaria, the company contributes to global health initiatives. EBC also supports the 'What Economists Really Do' public engagement series by Oxford University's Department of Economics, helping to demystify economics and its application to major societal challenges, fostering greater public understanding and dialogue.   

https://www.ebc.com/

Michelle Siow
EBC Financial Group
+60 172214065
michelle.siow|ebc.com| |michelle.siow|ebc.com
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