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60 seconds with Gareth Isaac on the outlook for bonds in 2016

While the outlook for the global economy is positive in 2016 the expectation is that bond markets will remain challenging.

11/25/2015

Gareth Isaac

Gareth Isaac

Turbulent markets

Our outlook for the global economy in 2016 is relatively positive:

  • US Federal Reserve is likely to raise interest rates in a slow and gradual manner in 2016.
  • China's policymakers have taken action to prevent a slowdown in the Chinese economy.
  • European Central Bank is likely to continue with its programme of more accommodative monetary policy.
  • UK is looking at growth of 2.5%.

Bond markets, however, are likely to be challenging.

One of the key messages for 2015 has been intervention in financial markets by central banks.

These large forces are contributing to moving bond markets and that is likely to stalk investors in 2016, even though the economic outlook is relatively positive.

The views and opinions contained herein are those of Schroders’ investment teams and/or Economics Group, and do not necessarily represent Schroder Investment Management North America Inc.’s house views. These views are subject to change. This information is intended to be for information purposes only and it is not intended as promotional material in any respect.