A soft landing is the more likely scenario, government bond yields should be affected by recent positive results, Europe is doing well in investment grade credit
What to expect from the fixed income market in the coming months? Julien HoudainHead of Global Unconstrained Fixed Income at Schroders (LON:), outlining the scenario that awaits us, draws a parallel with the world of football and what happened at the recent European Championships. Houdain explains that “life, like the game of football, often requires a return to normality, after periods of great fibrillation. Also, the global economy gives us a realistic reminder, following a -exciting times.”
SOFT LANDING EASY SCENARIO
“Our forecasts remain firmly focused on a soft landing result, and we have increased the probability to 90%, based on improving US inflation data and signs of easing labor markets” Houdain continued. “This gives us more confidence that the Federal Reserve will be able to ease monetary policy conditions, and as a result, we underweight a ‘no landing’ scenario”…
** This article was written by FinanceLounge