Why investors may look beyond U.S. bond markets

Some money managers are highlighting opportunities in government bond markets outside the United States as central banks in other countries move on different inflation and rate paths. George Bory of Allspring Global Investments said investors may benefit from adding international duration and diversifying across regions such as the U.K., Europe and Australia. He argued that shorter to intermediateterm government bonds in developed markets can be attractive when central banks are tightening or responding more aggressively to inflation. The article also notes that the European Central Bank recently raised rates, while the Federal Reserve has held rates steady since 2023. BlackRock’s Steve Laipply similarly pointed to European fixedincome securities as a way to seek lower risk and higher yields, underscoring the case for a more global approach to bond investing.