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Global Fixed Income Strategy Monthly Report

16 February 2026
Invesco
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In our regularly updated macroeconomic analysis, we offer an outlook for interest rates and currencies and look at which fixed income assets are favoured across a range of market environments. 

In this edition:

Macro

We share our 2026 macro outlook for the US and Europe. We’ve revised up our US growth outlook but expect sticky inflation. Europe should see better growth momentum but UK growth may soften.

Credit

We share our 2026 global credit outlook for investment grade, high yield, emerging markets and Asian credit.

Interest rate outlook

We are neutral on European rates. We expect the European Central Bank to stay on hold in the near term, but believe risks are skewed toward lower versus higher rates. We are overweight UK rates. We believe softening inflation and labour dynamics will impact rates.

Currency outlook

We are overweight the euro based on expected US dollar weakness and an improved European growth outlook. We are underweight the British pound, as Bank of England rate cuts have reduced its yield advantage.

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  • Investment risks

    The value of investments and any income will fluctuate (this may partly be the result of exchange rate fluctuations) and investors may not get back the full amount invested.

    Important information

    This is marketing material and not financial advice. It is not intended as a recommendation to buy or sell any particular asset class, security or strategy. Regulatory requirements that require impartiality of investment/investment strategy recommendations are therefore not applicable nor are any prohibitions to trade before publication.

    Views and opinions are based on current market conditions and are subject to change.

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