Converging Growth, Diverging Policies: What’s Next for Global Bond positioning?

This report, authored by Capital Group investment directors Flavio Carpenzano and Peter Becker, distills the shifting global economic landscape and its implications for fixed income. 

• US growth is set to moderate as tariffs fuel persistent inflation, while fiscal support and AI investment help sustain momentum. 

• Europe’s outlook is strengthening, with German fiscal expansion likely pushing the ECB toward rate hikes in 2026. 

• Tight valuations and political risk favor a defensive, globally diversified approach across rates, credit and EM local markets. 

Curious how these dynamics could reshape return drivers across global fixed income? Dive into the full analysis for a deeper view.