Investment Strategy Insights

UBS advises investors to secure high-quality bond yields amid geopolitical uncertainty and moderating central bank rate expectations. The firm expects a shift in policy timing for the ECB and a patient stance from the Federal Reserve.

Key Takeaways

• 1.Middle East tensions have caused bond yields to fall, supporting a strategic preference for locking in high-quality yields.
• 2.The ECB is expected to delay the next rate hike to September, with policy remaining data-dependent.
• 3.The Federal Reserve is expected to maintain a 'wait-and-see' approach with rate cuts unlikely until 2027.

Table of Contents

• Middle East shifts don’t derail the case for bonds
• Policy expectations in the Eurozone: On the move
• What about the US outlook?
• What does this mean for bond investors?
• Look beyond bonds too
• Global asset class preferences definitions
• Appendix

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