23.08 Liontrust MA Quarter In Review Q2 Literature (Single) - Flipbook - Page 13
Performance of bond markets
High yield bonds outperform as inflation-linked debt reverses
Q1 gains
Developed country high yield bonds were the fixed income leaders
in Q2 while inflation-linked debt reversed much of the gain it had
made in Q1. A dilution in recessionary worries was supportive of
the higher risk bonds. But yields on developed country government
and investment grade corporate bonds rose on worries that stiffer
action on interest rates could be needed to tame inflation, which
were prompted by data pointing to economic resilience and
comments from central bankers.
Bond returns Q2 2023
2%
1.3%
1%
0%
-0.2%
-0.5%
-1%
-1.3%
-2%
-2.2%
-3%
Developed Country
High Yield
Developed Country
Industry Grade
Developed Country
Government
Emerging Market
Debt
Inflation Linked Debt
Source: Morningstar, 30.06.23
Liontrust Multi-Asset Funds and Portfolios Quarterly Report: Q2 2023 - 13
