This Week From the Pallas Perspective - After a Tough Couple of Years, Bonds Positioned to Play a Role in Diversified Portfolios

The release of this week’s Consumer Price Index data for August revealed a rise in inflation compared to July. Though still lower than the previous year, the data suggests that the trajectory of interest rates looks likely to be higher for longer. However, following a historic third year of negative returns for the aggregate bond index, the role of bonds in a diversified portfolio is more attractive.