Getting to the Core of U.S. Bonds

We discuss the current macro environment for bonds and how different types of investors can approach today’s bond market.

Purple petals.



Fixed Income

Key takeaways

  • We are constructive on fixed income markets due to attractive yield cushions, a steady but slowing economy, and the Fed’s reduced scope of quantitative tightening.
  • We see inflation trending down—despite its stickiness—and we believe it will take longer than projected, but we expect the Fed to hit its inflation marks.
  • The upcoming elections could affect the fiscal picture and deficits remain high; there is a risk that the market cannot absorb the potential uptick in supply.
  • Investors can find competitive yields across the curve, lock in higher rates, and add duration as a measure of risk management in case of any unexpected market moves.