Short-duration strategies gain traction in 2025 fixed income markets

Short-duration fixed income remains a key focus for investors in 2025 as central banks weigh inflation risks against slowing economic growth. With the European Central Bank continuing to cut rates and the Federal Reserve maintaining a more cautious stance, interest rate uncertainty is keeping investors positioned at the short end of the yield curve. Higher yields on shorter-term bonds offer an attractive risk-reward balance, while potential volatility in longer-duration assets reinforces the case for defensive positioning. As markets adjust to evolving monetary policy, short-duration strategies...