The bond market outlook remains positive despite the increase in US Treasury yields and the possibility of a second Trump administration.

According to an International Monetary Fund report, global public debt is projected to exceed USD 100 trillion by the end of the year, with the US and China leading this increase.

Federal Reserve officials suggest that rate cuts will continue due to disinflation and slow economic activity in the US. This indicates that a restrictive monetary policy is unlikely in the near future.

Investment-grade corporate bonds are expected to have strong credit fundamentals and deliver high single-digit returns over the next year.

As the rate-cutting cycle progresses, investors are advised to reallocate excess cash into quality fixed income assets to reduce cash returns.

Diversified fixed income strategies are also recommended to enhance portfolio income.