Global fund managers turned less bullish on the bond market in January, as record optimism for interest rate cuts drove them to pile into Magnificent Seven stocks and long-duration tech.
According to the latest Bank of America Global Fund Manager survey, investors have scaled back expectations on bond yields, following the 100bps rally in long-term rates over the past two months. The survey found that 55% of respondents expect lower bond yields over the next 12 months, down slightly from a record 62% in December 2023, while expectations for lower short-term rates reached a record-high this month. Global investors remain set on Goldilocks soft landing despite bearish stance Over two-thirds think the Federal Reserve will be the most important driver of bond yields i...
To continue reading this article...
Join Investment Week for free
Signup and gain exclusive members-only insights - all free of charge!
- Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
- Get ahead of regulatory and technological changes affecting fund management
- Important and breaking news stories selected by the editors delivered straight to your inbox each day
- Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
- Be the first to hear about our extensive events schedule and awards programmes
