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By Mohammed KAZMI, Macro Strategist and Fixed Income portfolio manager, Union Bancaire Privée (UBP)
We believe that we are at a shift in regime for fixed-income markets as central banks prepare the ground for potential rate cuts following the most aggressive tightening cycle since the 1970s.
Whilst the exact path and speed of monetary policy easing remain uncertain, it appears clear that we have passed peak hawkishness and that central banks such as the Fed are moving back to focusing on their dual mandate of inflation and employment.
This is significant, as it suggests that central banks are now looking to extend the cycle with gradual rate cuts over time, rather than end the cycle through aggressive rate hikes, which had...
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