DEMAND for bonds will continue to remain strong, owing to the higher-than-normal base interest rates set by the US Federal Reserve. 

“There’s talk of rates being eased off next year, but we don’t see it coming down very, very rapidly,” said Clifford Lee, DBS’ global head of fixed income. 

Coupled with an air of uncertainty going into 2024, this could result in what Lee calls a “lack of conviction” from investors, as they mull investment decisions and strategies. “So what do you do while you think? You park it in bonds,” he said.