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Global Fixed Income Strategy Monthly Report | May 2026

14 May 2026
Invesco
The landmark of Toronto CN Tower rising straight up alongside compact corporate skyscrapers in sunrise.

Get an analysis of important drivers of global fixed income markets, including macroeconomic trends, interest rates, currencies, and credit, in our monthly global strategy report.

In this edition:

Macro strategy

We’ve revised our 2026 US macro-outlook: Higher energy prices will likely push headline inflation higher, growth should remain resilient, and we expect no Federal Reserve rate cuts in 2026.

Credit strategy

While oil market disruption and price volatility have grabbed headlines, disruption to other energy-related products and commodities will likely have a significant economic impact.

Interest rate outlook

We see value in European short-term rates but are neutral on longer-term European rates amid a more mixed outlook. We’re neutral on UK rates.

Currency outlook

We’re neutral on the euro, due to the eurozone’s vulnerability to energy market disruptions. We’re underweight the British pound because of the trade shock from higher energy prices.

Bottom line: Navigating an energy shock

It’s been a solid year for munis, with high yield munis a standout. Chief Investment Officer Mark Paris highlights which sectors could perform best going forward.

Read previous editions

  • 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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