T. Rowe Price's 2017 Fixed Income Playbook

Now that the election is over, the big discussion in bond world is the hand-off from monetary to fiscal stimulus
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Now that the election is over, the big discussion in bond world is the hand-off from monetary to fiscal stimulus, said Quentin Fitzsimmons, fixed income portfolio manager at T. Rowe Price. Bond markets globally are likely to see upward pressure on yields over the long term, according to Fitzsimmons. He added that U.S. protectionism would be very disruptive to investment flows and planning. The interplay between slow but discernible policy tightening in the U.S. and a firm anchoring of Japanese and core European bond yields suggest significant opportunities to exploit the move in spreads between international markets, according to Fitzsimmons. He added that global fixed income investors will continue to be rewarded for blending different country economic cycles together, especially in certain sovereign bond opportunities that are not traditionally part of global fixed income sovereign benchmarks.