• Bond markets sold off in the third quarter, as the market began to embrace the ‘higher-for-longer’ narrative around interest rates.
  • In rates markets, much of the activity has been further out on the yield curve, where yields rose significantly, and continued to rise at the start of October.  
  • Looking ahead, we believe high-quality, investment-grade corporates look the most attractive credit option and are best equipped to weather an economic slowdown.  

Vanguard’s experts provide their latest sector-by-sector analysis of global fixed income markets and a summary of how these trends affect Vanguard’s active bond funds.

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