Allspring Global Investments’ George Bory is advising clients to prioritize government bond markets outside the United States, citing diverging central bank rate cycles and inflation dynamics. He notes that bond markets in the UK, Europe, and Australia have already priced in aggressive tightening, but unless the Fed validates those moves, other central banks may have to slow their pace. Bory, chief investment strategist in fixed income at Allspring, recommends short to intermediate duration global developed market government bonds, especially where central banks are closely tied to inflation. He highlights the European Central Bank’s recent 25-basis-point rate hike to 2.25% on June 11, its first since September 2023, while the Fed has not raised rates since July 2023. BlackRock’s Steve Laipply also sees opportunities in European fixed-income securities offering lower risk and higher yields, and Bory emphasizes the benefits of diversifying duration, credit risk, and security selection across the massive global bond market.
BlackRock IncBlackRock's Steve Laipply sees opportunities in European fixed-income securities, which may benefit BlackRock's asset management business.
Allspring's strategist recommends global bonds outside US, potentially driving demand for Allspring's fixed-income strategies.