Bond Bulletin: US fixed income's promising path

The second Trump administration has seen heightened volatility across US equity, fixed income, and currency markets so far. However, with tariff uncertainty diminishing, economic data exceeding expectations, and most central banks adopting a dovish stance, we examine whether conditions for US fixed income are now more favourable.

What does this mean for fixed income investors?

In the backdrop of softening tariff uncertainty, better than expected data, most central banks leaning dovish, and improving corporate fundamentals – combined with a more constructive technical tone – we believe a window for high-quality US fixed income may be opening. Investors sitting on the sidelines may begin redeploying capital into parts of the market offering yield, resilience and relative safety. In our view, the shift from policy panic to market pragmatism favours an allocation to high-quality US fixed income.

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.

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