The outlook for interest rates has changed dramatically over the past week as markets pare back bets on how central banks will respond to acute inflation. As the war in Ukraine escalates, fixed income traders have faced a difficult trade-off: buy bonds for their haven properties or sell them because soaring commodity prices will add to inflationary pressures. Whichever way they go could prove to be very fruitful or costly given how quickly prices are moving. To help make sense of it all, Payden & Rygel’s Eric Souders gives his views on where the investment opportunities lie.

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