Fixed Income Global Fixed Income Strategy Monthly Report | May 2026
Invesco Fixed Income
May 15, 2026
Fixed Income Global Fixed Income Strategy Monthly Report | May 2026
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:
Global 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.
Global 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
US: We’re neutral on US rates because the market is no longer pricing in rate cuts this year.
Europe: We see value in European short-term rates but are neutral on longer-term European rates amid a more mixed outlook.
Currency outlook
US: We’re neutral on the US dollar due to the recent flight to quality, but are negative over the longer term because of expected reallocation to non-US currencies.
Europe: We’re neutral on the euro due to the eurozone’s vulnerability to energy market disruptions.
Bottom line: What’s driving munis and where is there value?
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.
Previous editions
Related insights
Important information:
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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.
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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