Implications for Fixed Income Investors
In portfolios, we favour a slight long-duration bias. In our view, yields offer an attractive entry point at current levels, though we recognise that the Fed’s reaction function remains uncertain. Officials are monitoring the duration and magnitude of this supply-side shock, while maintaining a moratorium on forward guidance. Still, the economy has weathered several supply-side shocks in recent years. Investors can continue to hold risk assets and target high-quality carry, as fundamentals are strong, the US economy is resilient, and momentum is expected to persist despite elevated gasoline prices.
About the Bond Bulletin
Each week J.P. Morgan Asset Management's Global Fixed Income, Currency and Commodities group reviews key issues for bond investors through the lens of its common Fundamental, Quantitative Valuation and Technical (FQT) research framework.
Our common research language based on Fundamental, Quantitative Valuation and Technical analysis provides a framework for comparing research across fixed income sectors and allows for the global integration of investment ideas.
