Three big questions facing bond investors in 2026

A year ago, bond markets were expecting support from widespread interest rate cuts and a return to normalisation in government spending. Instead, stubborn inflation has increased the chances of rate rises, and government spending cuts face opposition. There is limited room for tax rises, leaving bond markets to foot the bill. There are three key questions facing fixed income investors for the remainder of 2026: 1. What do yields and spreads currently tell investors about bond markets? 2. What are the big opportunities for bond investors in 2026? 3. What is the risk to investors’ capital...