Co-Head of Strategic Fixed Income at Janus Henderson, Jenna Barnard, explains how many investors are convinced of a regime shift in inflation and the impact it has had in the bond markets. However, the Strategic Fixed Income Team, while respectful of the current volatility and sharp repricing in the markets, do not see any new information that would change their longer term view on bond markets.

Key points:

• Bond markets are yet again trading on shifts in ‘narratives’ rather than ‘fundamentals’
• Core inflation has been remarkably stable across developed economies since the late 1990s and will likely remain low because of a number of long-term, structural factors
• Need to be patient for the latest bout of volatility to burn out when good investment opportunities should surface