Summary
- The January inflation data showed a broad-based reacceleration of services prices.
- While the slowdown in inflation should continue, reaching the 2% target may take more time.
- A key implication is that the Fed may wait slightly longer before cutting rates.
Actionable Ideas
- Flexible in US fixed income
After the recent rise, yields in US bonds are back at appealing levels. We see value in US government and high quality bonds.
- Seek diversified opportunities in global bonds
Global government bonds and high quality credit can offer investors appealing income and the opportunity to benefit from different rates and currency dynamics.
Key Dates
20 Feb China monetary policy |
22 Feb |
23 Feb Germany GDP |