December 05, 2023

Fixed Income Insights - December 2023

Monthly report

Treasuries front-run Fed easing, but caution on easing likely after 2021-2022

Download the latest reports


The scale of the November rally in government bonds suggests technical factors contributed, since central banks gave no indication of an early pivot, and although US growth has slowed, US core inflation of 4% remains. IG credit attracted demand, helped by absolute yield levels in the November rally and remains relatively cheap.

Key highlights:

  • Macro and policy backdrop – US economy slows but continues to withstand 2% real yields without major stress
  • Yields, curves and spreads – Yield curves re-inverted as markets anticipate policy easing. US spreads tightened 
  • Credit and MBS analysis – IG credit spreads narrowed in the November rally. RMBS spreads also ticked down
  • Sovereign and climate bonds – Green corporate spreads tightened further, continuing recent outperformance
  • Performance – Long dated gilts, Treasuries and Bunds led November rally, in reversal of the Q3 and October sell-off

These reports provide actionable insights on global fixed income markets. They cover shifts in global yield curve and credit spreads, across sovereign, inflation-linked and corporate indices, and FX-adjusted return performance using proprietary month-end data from our global fixed income indices.

For specialist content on a range of investment topics, including macroeconomic analysis and how it affects market performance and multi-asset analysis, viewed through our indices and data, explore our Global Investment Research hub.

Subscribe to Market Maps reports

Get timely market analysis and commentary on what’s been happening across asset classes, regions, industries and styles.  You’ll receive your report(s) by email as soon as they are published.