Weakening growth, slowing inflation, and an uncertain political environment are predicted to favor bonds over other assets in the first quarter of 2024, according to an outlook. The report highlights the opportunity for bond investors to secure yields that haven’t been seen in over 10 years. Higher yields not only mean higher returns but also reduce the likelihood of negative returns even if yields rise slightly. In the eurozone, there is expected to be a significant issuance of duration-intensive bonds, including syndicated issues from Belgium and Italy, as well as bond auctions from the Netherlands and Austria.
