Three Questions for 2025

December 9, 2024 — Fixed income markets face key questions that will shape their direction in the year ahead. Could the disinflationary trend of recent years reverse, bringing renewed concerns about inflation? Will valuations in areas like corporate bonds and credit spreads start to play a bigger role in investment decisions? And how might anticipated Republican tax cuts drive an increase in Treasury issuance, affecting supply and demand dynamics? These issues will influence bond market trends and investment strategies in the coming months. This post explores these questions and their potential impact on fixed income.