Chart in a Minute

Use these simple visuals to help illustrate technical market perspectives to clients.

A bright future for bonds, even after a late 2023 rally?


We think the outlook for fixed income remains quite favorable, even after an impressive rally late last year.

Bar chart comparing Yield to Worse of various investments

Key takeaways:

  • Inflation continued trending lower in 2023, leading the Federal Reserve (Fed) to a late-year pivot on interest rates and forecast for three cuts in 2024. Bonds rallied in response, sending yields lower.
  • As a result, yields are below what may have been this cycle’s highs, but they remain attractive. The chart above shows recent yields compared with just before the Fed’s recent rate-hike cycle began.
  • In this environment, it’s worth remembering that coupon payments tend to drive bond returns over the long term. And with this in mind, we think the outlook for bonds remains quite bright.

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