Fixed Income Perspectives — July 2025

July 10, 2025 — This presentation provides an overview of our market outlook and key themes, and it illustrates how Sage is positioned in the current environment.

Key Takeaways

• The US economy continues to show signs of a “Goldilocks” environment, with stable labor markets and fiscal policy providing momentum, while goods inflation remains subdued despite tariff risks.
• Expectations for increased Treasury bill issuance and multiple Fed rate cuts through 2026 are putting downward pressure on interest rates, encouraging a shift from cash into riskier assets.
• While tight credit spreads limit value in traditional corporate bonds, select securitized assets like agency MBS and data center-backed debt offer more attractive relative opportunities.