Jenna Barnard, Co-Head of Strategic Fixed Income, explains how the persistence of interest rate divergence remains central to the team’s thinking on the outlook for the bond markets.
- Bond markets will be dominated by interest rate divergence across developed economies over the next few years
- Central banks in a number of economies such as Australia and Europe simply do not have the impetus to hike rates…
- …but some have followed the US Federal Reserve, such as Canada
- Divergence in interest rates create opportunities to actively manage duration