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 our January report:
The year-end Invesco Fixed Income Global Investor’s Summit included lively discussions around global macro trends and implications for markets. Get our conclusions.
US: We’re neutral on US rates. The Federal Reserve (Fed) cut rates in December, and more cuts are likely on the way in 2026, but these expectations appear to be priced in.
Europe: We’re neutral on European rates. Markets have priced in rate hikes for next year, but we believe expectations are premature amid lower-than-expected inflation and growth risks.
US: We’re underweight the US dollar, based on a narrowing growth differential between the US and the rest of the world, Federal Reserve (Fed) rate cuts, and the US desire for a weaker currency to support domestic manufacturing and reshoring.
Europe: We’re overweight the euro based on expectations of continued US dollar weakness, a supportive eurozone fiscal environment, and potential flows away from US dollar assets.
Many Summit discussions centered on AI and the role of private credit financing. Invesco Fixed Income portfolio managers weigh in about the rising interest in private credit in the investment grade space.
The world is changing, and sovereign investors see both risks and opportunities from these shifts — from emerging tensions over trade and tariffs, to China’s advancements in strategic sectors, to the changing role of fixed income in portfolios. Explore insights from our survey.
Learn how the Invesco Fixed Income team leverages active strategies to navigate risks, capitalize on credit opportunities, and deliver better outcomes.
Explore insights on front-end rate cuts, long-term yield trends, and how volatility may settle in 2025.
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The opinions expressed are based on current market conditions and are subject to change.
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