How are $10trn of fixed income assets positioned in Q1 2019?

Hardeep  Tawakley
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How are $10trn of fixed income assets positioned in Q1 2019?

Partner Insight: Data shows a surprisingly upbeat set of readings when it came to fixed income assets in 2019

Far from rushing to safety in the midst of the turbulent end to 2018, data from State Street's latest Bond Compass shows institutional investors are selling Treasuries and, in December at least, began to dip a tentative toe back into Italian and emerging market debt.

Contrary to expectations, Q4 turned out to be more difficult than expected for risky assets. However, long-term investor behaviour in fixed income markets indicates less panic than price and yield moves suggested.

In this quarter's edition of Bond Compass, the PriceStats® information provides timely inflation analysis for the US, Eurozone and emerging markets and reveals that the pace of inflation in these regions is already slowing in response to lower energy prices.

This change will help the Federal Reserve and emerging market central banks to justify a pause in interest rate hikes — but it will also potentially complicate the ECB's hopes to normalise policy.

Bond Compass is a global, quarterly report that aims to help investors navigate the global bond market, and includes analysis from State Street Global Markets that analyses bond flows and holdings indicators from Q4 2018, taken from a data set that represents some $10 trillion of assets*.

To read the exclusive data in digital format, click here:

 

* Source: State Street Form 10-K. As of 31 December 2018.

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