Fixed income briefing: analysts break down August's key bond market trends

In their monthly fixed-income briefing, analysts examine how yields on government and corporate bonds shifted in August amid mixed signals from major central banks. Particular attention goes to credit spreads, which reflect the market's perception of corporate borrower risk, as well as expectations for the future path of interest rates in the U.S. and Europe. The report's authors note that investors are increasingly pricing in monetary easing scenarios, a trend already visible in longer-dated segments of the yield curve. For investors building bond portfolios, the briefing serves as a handy tool for gauging the relative appeal of different fixed-income segments. The report also touches on how geopolitical factors are shaping risk appetite for emerging-market debt.