After a series of aggressive rate hikes throughout the past couple of years, all eyes are on Central Banks.

The focus is on the timing and magnitude of their monetary policy decisions, with the ECB leading the way and beginning its pivot by cutting rates by 25bps in each of June, September, and October, bringing rates down to 3.25%, the lowest since May 2023.

The Federal Reserve cut interest rates by 50bps in September 2024, marking the first reduction since March 2020. Continuing its efforts to stimulate the economy, the Federal Reserve announced another rate cut in November, this time by 25bps, bringing the rate down to 4.75%.

In our view, this easing scenario should drive investors to reassess their fixed income allocations.

Watch this video to learn more:

Amundi Convictions H2 2024 - Fixed Income theme video

Unless otherwise stated, all information contained in this document is from Amundi Asset Management S.A.S. and is as of 20 November 2024. Diversification does not guarantee a profit or protect against a loss. The views expressed regarding market and economic trends are those of the author and not necessarily Amundi Asset Management S.A.S. and are subject to change at any time based on market and other conditions, and there can be no assurance that countries, markets or sectors will perform as expected. These views should not be relied upon as investment advice, a security recommendation, or as an indication of trading for any Amundi product. This material does not constitute an offer or solicitation to buy or sell any security, fund units or services. Investment involves risks, including market, political, liquidity and currency risks. Past performance is not a guarantee or indicative of future results. 

Date of first use: 20 November 2024.
Doc ID: 4014378