UBS analysts are casting a wary eye across bonds, saying there is likely to be only a modest upside now for both US and global equities.
They still are happy with higher quality stocks and bonds in 2024, expecting them to record higher than average growth against a backdrop of slowing economic growth.
From the note, in brief:
- rate of economic growth has been a worry for markets heading into the new year
- “While we expect rates to come down in 2024, supporting both equity and bond markets, the speed of recent gains is likely to moderate,”
- most preferred is fixed income, forecasting 10-yr US Treasury yield to fall to 3.5% by the end of 2024
