Aegon AM's Colin Finlayson: Where next for fixed income in 2024

Inflation, growth and rates

So far this year, the macroeconomic backdrop has been driving fixed income markets. Investors have been latching on to one narrative after another.

Where are we now as we approach the midpoint of the year? Let us take a look at the three key areas: inflation, growth and interest rates. Inflation Inflation has been probably the biggest story so far this year, particularly in the US, where it has been the key driver of market sentiment and direction. While we have seen steady declines, these have become a bit slower, US CPI has become a little bit stickier, and concerns have arisen about the degree of interest rate cuts that the US Federal Reserve can deliver.  Fed retains higher for longer stance in wait for inflation 'mov...