Global Aggregate Fixed Income Monthly - April 2024

Having long cautioned against expectations of early rates cuts, we remain cautious on the precise timing of rate cuts. However, given the backdrop of higher government deficits, potential productivity gains from AI and comparing to previous periods, our conviction is growing on where real rates ultimately will settle.

We also discuss what moderately tight monetary policy, fiscal tightening indifference from governments and moderately positive economic data means for portfolio positioning.