The outlook for fixed income markets in the 2nd quarter of 2025 may just present a cautiously optimistic view, driven by a combination of factors. 

Global interest rates are expected to follow a downward bias, supported by a likely 75bps Fed Fund Rate cut starting in June, as the Federal Reserve aims to balance its mandate with economic conditions.

In fact, a risk-off sentiment continues to dominate investor behavior, with flows directed toward safe-haven assets like government bonds and investment-grade credits. 

So what’s the outlook like for fixed income markets? Should investors stay overweight in this market?

On The Wealth Tracker, Nadiah Koh speaks with Barnabas Gan, Group Chief Economist & Head of Market Research, RHB Bank.