Although bond market professionals expect short-term interest rates will continue to fall this year, 91% of them think the economic slowdown will last one year or less, according to a survey released at The Bond Market Assciation’s annual meeting last week.
About 95% cited the economy as having the greatest impact on the fixed-income markets this year.
For short-term interest rates, 57% said they would be lower one year from now, while almost 29% expected the rates to be higher. Respondents were evenly divided on long-term interest rates, with 38.6% forecasting higher rates and the same percentage expecting rates to fall.
