Fixed Income Year in Review

December 17, 2024 — As the year comes to a close, we revisit some of the key market themes and moves for 2024. 

The “rates pendulum” swung widely as markets contended with strong economic data to start the year, buffered by fears of an economic contraction in late summer as labor markets showed signs of slowing. Although the US economy remained solidly in expansion, the Fed began lowering its policy rate in September, which combined with expectations of an economic boost from a Republican sweep, resulted in a shift higher in bond yields into the end of the year.