Fixed Income Global Fixed Income Strategy Monthly Report | July 2026

Invesco Fixed Income
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Get an analysis of important drivers of global fixed income markets, including macroeconomic trends, interest rates, currencies, and credit, in our monthly global strategy report.

In this edition:

Global macro strategy

Key macro conclusions for the US, Europe, China, and emerging markets from the June IFI Global Investors’ Summit:  

  • US: AI is the dominant macro theme, but its effects are uncertain
  • Europe and UK: Tightening by the European Central Bank (ECB) and Bank of England (BoE) is best viewed as “insurance hikes,” not the start of a sustained tightening cycle
  • China: Export power offsets lukewarm domestic demand
  • Emerging markets: Reassessing the oil shock — why this isn’t 2022

Global credit strategy

Credit investors discussed where they see opportunities within US and European investment grade and high yield at the June IFI Summit. Key takeaways:

  • The European auto sector received the harshest criticism
  • AI infrastructure emerged as the highest conviction theme, with potential investment opportunities across sectors and ratings categories.

Interest rate outlook

Overweight: China
Neutral: Australia, Europe, UK, and US
Underweight: Japan

Currency outlook

Overweight: Chinese renminbi and US dollar  
Neutral: Australian dollar and Japanese yen
Underweight: British pound and euro