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Global Fixed Income Strategy Monthly Report | June 2025

8 July 2025
James Ong
James Ong
Director, Derivative Portfolio Management
The landmark of Toronto CN Tower rising straight up alongside compact corporate skyscrapers in sunrise.

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 the macro conclusions from IFI’s June Global Investors’ Summit, where investors discussed macroeconomic trends in the US, Europe, China and emerging markets.

Credit

IFI credit investors discuss where they see opportunities across US and European investment grade, European high yield and emerging markets.

Interest rate outlook

We are neutral European interest rates. The ECB has normalised interest rates in line with policymaker estimates of the eurozone’s neutral rate. Consequently, we believe the bar is now higher for further easing. We are overweight UK interest rates, as The Bank of England appears more confident in the disinflation trend in the UK.

Currency outlook

We are overweight the euro as eurozone fixed income and equity assets are expected to continue to garner inflows. We are neutral the British pound, as the Bank of England continues its interest rate normalisation.

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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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