Article Global Fixed Income Strategy Monthly Report | September 2026

3 September 2026
The landmark of Toronto CN Tower rising straight up alongside compact corporate skyscrapers in sunrise.

Discover our Global Fixed Income Strategy Monthly Report, 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

Can Japan reverse the yen’s decline? Despite largescale intervention, we believe macro factors will ultimately determine the yen’s path.

Credit

While hyperscaler credit quality remains strong, AI-related debt issuance is starting to pressure bond markets. We favor selectivity over broad exposure.

Interest rate outlook

We are neutral on the US 10-year Treasury. A more constructive view would depend on a more concrete hawkish message from the Fed or a genuine resolution of geopolitical risks. 

We are also neutral on European rates and expect a September rate hike from the ECB.

Currency outlook

We are neutral on the US dollar, given reduced pressure on the Fed to hike rates amid slowing growth and inflation. We are underweight on the euro, based on the eurozone’s lacklustre growth and unfavourable interest rate differentials.

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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.