Brighter Return Prospects Despite Rate Volatility — Fixed Income Outlook in 5 Charts

September 19, 2022 — The market is currently pricing in the Fed to raise rates by an additional 175 bps through the end of 2022 to a 4.25% terminal rate for this hiking cycle. The yield curve has flattened to deeply negative levels to account for the effects of tightening financial conditions. For long-term investors, high-quality fixed income yields offer compelling entry points, particularly in short duration sectors.