Global Aggregate Fixed Income Monthly - June 2024

In our June Global Fixed Income update; Head of Investment, Gary Hutchings discusses the growth outlook and balancing the impact of employment and inflation. With higher government deficits, we discuss why we see real rates in a range of 1.5-2.0% and why this makes bond markets relatively attractive at current levels. In a big year for elections, following recent French and UK polls and US Elections on the horizon, we remain acutely aware of political risk and the fact that navigation of these risks is challenging.

The economic outlook remains unchanged and we expect the US 10 Year to move in a range of around 3.8-4.7%, with duration adjusted accordingly. Currency country allocations remain important; we do not have a very clear view on the USD/EUR and we position around correlated currencies. We also discuss our credit and spread positioning.

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