Bob Michele, global head of fixed income at JPMorgan Asset Management, said the bond market has reached a point of “maximum pain” as investors confront an abrupt shift in the interest-rate outlook.

Michele delivered the assessment on Bloomberg Surveillance: The Fed Decides, telling the program that “the dominoes are starting to fall.” His remarks came as markets digested the Federal Reserve’s latest policy decision and weighed the outlook for inflation, growth, and government borrowing.

The warning centers on the pressure that builds when higher yields spread across fixed-income markets. As benchmark yields rise, bond prices fall, and climbing borrowing costs can weaken demand for bonds, swell financing expenses for governments and companies, and force investors to reassess the value of assets priced against interest rates. Because benchmark yields serve as reference points for borrowing costs across the economy, from corporate loans to mortgage rates, sustained increases can tighten financial conditions well beyond the bond market itself.

JPMorgan Asset Management, the investment management arm of JPMorgan Chase, is one of the world’s largest asset managers, and Michele is a widely followed commentator on interest rates and central bank policy. With the firm overseeing fixed-income portfolios at that scale, his public remarks are often read as a gauge of institutional sentiment on rates. His comments highlight the tension facing bond investors as the Fed balances support for economic activity against renewed inflation risks. Market participants are watching whether officials signal further rate increases and how long policy will remain restrictive — questions that upcoming Fed communications and incoming inflation data are likely to inform.

Michele’s remarks add to an ongoing debate over whether the latest move in yields represents a temporary adjustment or the beginning of a broader repricing across global fixed income.