Bond Bulletin: Bonds poised to deliver as labour markets slow

With the central bank calendar ramping up, this week’s Bond Bulletin assesses what the likely paths are for the Federal Reserve (Fed), the Bank of Japan (BoJ), and the Bank of England (BoE), and what this means for bond markets.

What does this mean for fixed income investors?

The key theme that should support fixed income markets is ultimately the Fed cutting interest rates. Positive real yields and supportive technical factors form a constructive backdrop for fixed income. As cash begins to rotate out of money market funds, fixed income stands to benefit both from direct flows and tighter credit spreads. We maintain a positive stance on duration and see opportunities for further spread compression as monetary policy, driven mainly by the Fed, starts to play out.

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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