- Lacklustre economic growth means interest rates are unlikely to rise.
- Demand for shorter-dated bonds to remain robust.
- Modest but stable economic growth is helpful for corporate bonds.
- Inflationary pressures could begin to constrain the Federal Reserve from the spring.
- Default rates in the corporate bond market have edged higher (although they haven’t spiked).
- Political uncertainty could place strains on the bond market.
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