Amundi Asset Management: Market interest rate risk remains unclear, short-duration bonds have a clear risk-return advantage

Amundi Asset Management pointed out that the current market interest rate risk is unclear, and the risk-return advantage of short-duration bonds is significant, making them suitable for reviewing portfolio allocation. The inverted yield curve makes short-term fixed income instruments more attractive, and it is expected that the Federal Reserve will maintain an accommodative monetary policy in 2025. Despite the unclear factors in the market, short-term bonds can provide investors with the opportunity to lock in yields and buffer against potential market sell-offs. Fixed income should be viewed as a core part of the portfolio to enhance stability