16 October 2025
Fixed Income Perspectives outlines the current macro and market views from across Capital Group’s extensive fixed income team and offers insights on investors' bond exposure against an ever-changing backdrop.
In our Q4 2025 update, we discuss:
- Global growth is expected to moderate but remain positive through 2026. The global economy is navigating a complex transition and possible growth convergence, especially between the US and Europe.
- The Federal Reserve has pivoted to cutting interest rates as softening labour market data take priority over inflation.
- Valuations across fixed income sectors appear tight relative to history, while fundamentals and technicals remain supported by the policy and growth backdrop. We are focused on building resilience and balance in our portfolios while also positioning for a further steepening of the yield curve.
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Statements attributed to an individual represent the opinions of that individual as of the date published and do not necessarily reflect the opinions of Capital Group or its affiliates. All information is as at the date indicated unless otherwise stated. Some information may have been obtained from third parties, and as such the reliability of that information is not guaranteed.