Warning: members of the public are being contacted by people claiming to work for AXA Investment Managers UK Limited.  Find out more information and what to do by clicking here.

Global Short Duration strategy - January 2023

  • 15 February 2023 (5 min read)

Sovereign yields rise as central banks remain hawkish

  • Credit spreads were mixed as central banks remained hawkish
  • US treasury, UK gilt and German bund yields were higher, with the latter underperforming
  • The risk profile was stable

What’s happening?

Despite the reopening of the Chinese economy following the easing of its stringent zero-Covid-19 policy, credit spreads were mixed in December on the back of stronger than expected US economic data and continued hawkishness from central banks.

The US Federal Reserve did slow down the pace of interest rate hikes, with a 0.50% increase to a range of 4.25-4.50% in December, but it also reaffirmed that it would stick to its aggressive monetary policy stance due to a persistently tight labour market. The Bank of England (BoE) and European Central Bank (ECB) also slowed the pace of interest rate rises, with 0.50% increases to 3.50% and 2% respectively. Despite the dovish split of the votes, the minutes from the BoE policy meeting remained hawkish while the ECB tone was resolutely hawkish as it stressed that significant tightening remained ahead. Finally, in a hawkish shift, the Bank of Japan (BoJ) unexpectedly doubled the cap of bond yield in its ‘yield curve control’ policy.

Despite falling inflation numbers, US treasury, UK gilt, and German bund yields rose as central banks remained hawkish, with the latter underperforming after the ECB policy meeting.

Download the full monthly perspective
Download report (267.61 KB)
Fixed Income

What are short duration bonds?

A short duration bond is generally a bond with a short time to maturity. At AXA IM we define this period as 5 years or less.

Learn more

Visit the fund centre

Fixed Income
Global Short Duration Bond strategy

The aim of the strategy is to provide income combined with any capital growth.

View funds

Related Articles

Fixed Income

Global Strategic Bond Fund - October 2023

  • by Nick Hayes
  • 02 November 2023 (5 min read)
Fixed Income

Global Strategic Bonds strategy - October 2023

  • by Nick Hayes
  • 20 October 2023 (5 min read)
Fixed Income

Global Short Duration strategy - September 2023

  • by Nicolas Trindade
  • 19 October 2023 (5 min read)


    Not for Retail distribution: This marketing communication is intended exclusively for Professional, Institutional, Qualified or Wholesale Clients / Investors only, as defined by applicable local laws and regulation. Circulation must be restricted accordingly.

    This marketing communication does not constitute investment research or financial analysis relating to transactions in financial instruments as per MIF Directive (2014/65/EU), nor does it constitute on the part of AXA Investment Managers or its affiliated companies an offer to buy or sell any investments, products or services, and should not be considered as solicitation or investment, legal or tax advice, a recommendation for an investment strategy or a personalized recommendation to buy or sell securities.

    Due to its simplification, this marketing communication is partial and opinions, estimates and forecasts herein are subjective and subject to change without notice. There is no guarantee that forecasts made will come to pass. Data, figures, declarations, analysis, predictions and other information in this document is provided based on our state of knowledge at the time of creation of this document. Whilst every care is taken, no representation or warranty (including liability towards third parties), express or implied, is made as to the accuracy, reliability or completeness of the information contained herein. Reliance upon information in this material is at the sole discretion of the recipient. This material does not contain sufficient information to support an investment decision.

    Before making an investment, investors should read the relevant Prospectus and the Key Investor Information Document / scheme documents, which provide full product details including investment charges and risks. The information contained herein is not a substitute for those documents or for professional external advice.

    The products or strategies discussed in this document may not be registered nor available in your jurisdiction. Please check the countries of registration with the asset manager, or on the web site https://www.axa-im.com/en/registration-map, where a fund registration map is available. Please note that the management company reserves the right, at any time, to no longer market the product(s) mentioned in this communication in an European Union country by notification to its authority of supervision in accordance with European passport rules. In particular units of the funds may not be offered, sold or delivered to U.S. Persons within the meaning of Regulation S of the U.S. Securities Act of 1933. The tax treatment relating to the holding, acquisition or disposal of shares or units in the fund depends on each investor’s tax status or treatment and may be subject to change. Any potential investor is strongly encouraged to seek advice from its own tax advisors. In the event of dissatisfaction with the products or services, you have the right to make a complaint either with the marketer or directly with the management company (more information on our complaints policy available in English here). You also have the right to take legal or extra-judicial action at any time if you reside in one of the countries of the European Union. The European online dispute resolution platform allows you to enter a complaint form (by clicking here) and informs you, depending on your jurisdiction, about your means of redress (by clicking here).

    Past performance is not a guide to current or future performance, and any performance or return data displayed does not take into account commissions and costs incurred when issuing or redeeming units. The value of investments, and the income from them, can fall as well as rise and investors may not get back the amount originally invested. Exchange-rate fluctuations may also affect the value of their investment. Due to this and the initial charge that is usually made, an investment is not usually suitable as a short term holding.

    Issued in the UK by AXA Investment Managers UK Limited, which is authorised and regulated by the Financial Conduct Authority in the UK. Registered in England and Wales No: 01431068. Registered Office: 22 Bishopsgate, London EC2N 4BQ. In other jurisdictions, this document is issued by AXA Investment Managers SA’s affiliates in those countries.

    Risk Warning

    The value of investments, and the income from them, can fall as well as rise and investors may not get back the amount originally invested. 

    Are you an IFA or other Professional Investor ?

    Are you a financial advisor, institutional, or other professional investor?

    This section is for professional investors only. You need to confirm that you have the required investment knowledge and experience to view this content. This includes understanding the risks associated with investment products, and any other required qualifications according to the rules of your jurisdiction.