2024 | Quarterly Outlook | Fixed Income
The events in Europe following the European elections underscore how political developments can suddenly take center stage. In today’s insight, I take a quarterly view on the fixed income market, discussing;
Macroeconomic and policy outlook
Hard to see growth outlook improving further
Central banks cautious to cut rates, pending slower services inflation and weaker jobs growth
(Geo)politics poses downside risks demonstrated by French EU elections
Rates strategy
Yield levels expected to be rangeboud
Curves set to steepen
Underweights in Japan, Canada and Sweden
Fixed income asset allocation
Up or out in high yield
Political risks back due to fiscal worries
Local factors can defend against king dollar
