What does this mean for fixed income investors?
Current market expectations are for a divergence in central bank monetary policy in 2026. Some central banks, such as the Bank of Japan, are expected to raise rates significantly. Others, such as the European Central Bank, Bank of Canada and Reserve Bank of Australia, are priced to be neutral to slightly higher. Meanwhile, the Federal Reserve and Bank of England are expected to cut rates. In this market environment, given the dispersion of potential outcomes, active management will be a key source of enhanced returns for global fixed income investors.
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.
