Fixed income investors have faced considerable volatility in markets in 2026, driven by a combination of geopolitical tensions, rising inflation and higher levels of issuance.
As we head into the final stretch of 2026, critical questions are reshaping investor strategy. While equity and fixed income volatility has remained contained, the real story lies elsewhere: the evolving Middle East situation, the trajectory of inflation and central bank policy divergence, the implications of the US midterm elections and the perspective of the AI capex cycle.
The last few months have not been straightforward for fixed income markets. As oil prices surged amid the Middle East conflict and inflation expectations rose, markets repriced the potential path of monetary policy.