Higher for longer: Fixed income popularity mounts as investors prepare for a new rates environment

Developed markets face pressure

Elliot Gulliver-Needham
clock • 5 min read

As central banks poise to hold interest rates higher for longer, a fixed income market used to near-zero rates is set to be upended.

In the second instalment of Investment Week's 'Higher for longer' series, examining the impact persistently higher interest rates are set to force on various corners of the market, we examine the effect this has had on the fixed income market. This week, 10-year US Treasury yields surpassed 5% for the first time since before the Global Financial Crisis. Malin Rosengren, portfolio manager at RBC BlueBay Asset Management, said that a higher for longer environment would force a transfer from low yielding assets into fixed income, as the increased yield of low-risk bonds becomes more appe...

To continue reading this article...

Join Investment Week for free

  • 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

Join now

 

Already an Investment Week
member?

Login

More on Bonds

Global ESG backlash has not eroded demand for UK green bonds

Global ESG backlash has not eroded demand for UK green bonds

This year's auctions oversubscribed

Sorin Dojan
clock 03 July 2025 • 4 min read
Federated Hermes launches Global Short Duration Bond fund just as asset class booms

Federated Hermes launches Global Short Duration Bond fund just as asset class booms

Responding to ‘increased investor demand’

Eve Maddock-Jones
clock 25 June 2025 • 2 min read
Fixed income investment set to rise as bonds hit double digit growth in asset allocation

Fixed income investment set to rise as bonds hit double digit growth in asset allocation

Assets in fixed income up 11%

Patrick Brusnahan
clock 19 June 2025 • 3 min read
Trustpilot