It’s been a challenging year for fixed income investors as high inflation and hawkish central banks combined to spark one of the largest routs witnessed in modern times, with market speculation on what will roll over first – inflation or economic growth – creating an incredibly challenging environment. But with volatility comes opportunity; yields across sovereign, investment grade and high-yield curves appear attractive relative to those offered by other asset classes.

In this wide ranging discussion with David Scutt from ausbiz, Chris Rands, Co-Portfolio Manager of the Yarra Australian Bond Fund, details the outlook for monetary policy from the Federal Reserve and Reserve Bank of Australia, what the shape of government bond curves tells him about the outlook for inflation, growth and corporate earnings, along with challenges posed by a clear lack of trust in forward guidance provided by central banks.