Navigating Rates
Fixed Income Forward: January 2025
Bond markets kicked off 2025 with a focus on rising term premia. Investors are now demanding more compensation for the risk of holding longer-dated bonds. The UK is a case in point. In early January, 10-year Gilt yields hit 17-year highs as the pound weakened. More recently, a rather benign batch of inflation data from the US, the UK and the euro area provided some relief but has yet to counter the upward march of core government bond yields.