Despite the concerns, one area of consensus among fixed income investors is renewed caution on UK assets, which Mr Iggo describes as “vulnerable” following the recent political turmoil.
“The ratings agencies are getting nervous, and further downgrades to the UK’s credit ratings are increasingly possible,” Mr Leaviss says.
Macro, currency and monetary factors will continue to dominate the fixed income arena for the remainder of the year, Mr Iggo adds.
As hawkish comments become more prominent across the world’s three major central banks, the second half of 2017 could have more surprises in store.
Taha Lokhandwala is deputy editor of Investment Adviser
Number of years since the last Bank of England interest rate rise
Fall in the 10-year UK gilt yield in the 12 months since the 2016 EU referendum
Chance of a US Federal Reserve rate hike to 1.5% in December 2017, according to CME Group
One-year rise in the Bloomberg Global High Yield index