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Global Fixed Income Strategy Monthly Report | July 2026

July 16, 2026
Invesco
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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:

Global macro strategy

Key macro conclusions for the US, Europe, China, and emerging markets from the June IFI Global Investors’ Summit:  

  • US: AI is the dominant macro theme, but its effects are uncertain
  • Europe and UK: Tightening by the European Central Bank (ECB) and Bank of England (BoE) is best viewed as “insurance hikes,” not the start of a sustained tightening cycle
  • China: Export power offsets lukewarm domestic demand
  • Emerging markets: Reassessing the oil shock — why this isn’t 2022

Global credit strategy

Credit investors discussed where they see opportunities within US and European investment grade and high yield at the June IFI Summit. Key takeaways:

  • The European auto sector received the harshest criticism
  • AI infrastructure emerged as the highest conviction theme, with potential investment opportunities across sectors and ratings categories.

Interest rate outlook

Overweight: China
Neutral: Australia, Europe, UK, and US
Underweight: Japan


Currency outlook

Overweight: Chinese renminbi and US dollar 
Neutral: Australian dollar and Japanese yen
Underweight: British pound and euro

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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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