The Federal Reserve's Positive Growth Outlook for the Bond Market

Bonds and fixed income tends to perform best in periods of deteriorating growth. Interest rates falling is good for bonds through the simple mechanisms that when yields fall prices rise. So it follows that if we are then forecasting a significant positive growth outlook, what you would classically expect is for central banks to look really to remove that monetary accommodation. That would be the kind of classical pattern. And I think some version of that is likely where we are. We're going to see rates continue to rise over the course of this year," he says.