What does market volatility mean for fixed income?

As inflation fears roil the markets, we share our outlook for global bond markets

Time to read: 4 min

Market expectations of inflation have risen in recent days, after signs of wage growth — often seen as a harbinger of inflation — appeared in the January jobs report. We at Invesco Fixed Income believe investor concerns that inflation is finally showing signs of life have helped drive interest rates higher and impacted credit markets, where worries over higher interest rates (and their potential impact on companies) have caused declines in stock markets and other risky assets.1