Multi-Sector Bond Quarterly Update – October 2024

Key takeaways

Multi-Sector Bond market performance

• Despite mid-quarter volatility, overall performance in Q3 2024 was strong
• Government bonds led the way, with yields at higher-than-average levels
• Market sentiment improved in September, driven by several positive developments. US unemployment data remained stable, and the Federal Reserve (Fed) initiated its rate-cutting cycle with a 50 basis point cut following the September Federal Open Market Committee meeting. Additionally, we saw more positive headlines from China, which had been underperforming over the past few quarters

Market outlook

• Overall Q3, was a strong one for credit and rates markets and we see the continued potential in government bonds heading into the rest of the year
• We believe fixed income is a very attractive place, particularly with yields currently offering higher than long term averages