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Capital IdeasTM

Investment insights from Capital Group

Categories
Fixed Income
Fixed Income Perspectives Q1 2025

 


The statements expressed represent perspectives from Capital Fixed Income Investors, as at 31 December 2024. The views of individual portfolio managers and analysts may differ. © 2025 Capital Group. All rights reserved. Data as at 31 December 2024, and attributed to Capital Group / Bloomberg Index Services Ltd, unless otherwise stated.

• Bond yields rose during the fourth quarter as the market reduced its expectations for future rate cuts from the Fed.


• Against a backdrop of solid economic data, the Fed signalled fewer cuts in 2025 given its expectations for slightly higher core PCE inflation. Meanwhile, other central banks continued to ease monetary policy.


• We expect global growth to remain positive, albeit at a slower pace, and that the US will likely drive most of this growth as it remains more resilient than other developed economies.


• Our key convictions for a core bond portfolio include a preference for diversified sources of income from multiple credit sectors and positioning for a further steepening of the yield curve.



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Past results are not predictive of results in future periods. It is not possible to invest directly in an index, which is unmanaged. The value of investments and income from them can go down as well as up and you may lose some or all of your initial investment. This information is not intended to provide investment, tax or other advice, or to be a solicitation to buy or sell any securities.

Statements attributed to an individual represent the opinions of that individual as of the date published and do not necessarily reflect the opinions of Capital Group or its affiliates. All information is as at the date indicated unless otherwise stated. Some information may have been obtained from third parties, and as such the reliability of that information is not guaranteed.

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