nov 25 reuters  global bond yields will likely fall slightly in 2023 as the balance between demand and supply will improve by 1 trillion strategists at jp morgan said in a note there will be a 700 billion contraction in global bond demand next year compared to 2022 while bond supply will likely drop by 16 trillion jp morgan strategists led by nikolaos panigirtzoglou estimated in the note issued on thursday based on the historical relationship between annual changes in excess supply and the global aggregate bond index yield a 1 trillion improvement in the demandsupply balance would imply downward pressure on global aggregate yields of around 40 basis points the wall street bank said jp morgan said that while major central banks trimming their balance sheets in 2022 was the single largest contributor to deterioration in bond demand selloffs by commercial banks and retail investors were also much higher than estimates this year was one of the worst for bonds in history while shortdated us treasury losses were limited to less than 10 the 23 drop in annual returns of the 10year us treasuries through last month was  according to bank of america  the worst since the turbulent infancy of 1788 read more reporting by aniruddha ghosh in bengaluru editing by savio dsouza