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Maybank Asset Management Maintains Positive Outlook for Mid-Term Bonds

Apr 27, 2026 02:54 UTC
Medium term

Rachana Mehta of Maybank Asset Management suggests that 5-6 year bonds remain attractive for investors. The firm highlights the potential for positive returns driven primarily by carry.

  • Positive returns expected for 5-6 year bonds
  • Returns are driven by the carry perspective
  • Analysis provided by Rachana Mehta of Maybank Asset Management
  • Focus on mid-term duration for income generation

Maybank Asset Management has signaled a positive outlook for investors targeting the mid-term segment of the bond market, specifically those focusing on durations of five to six years. According to Rachana Mehta, the current market environment allows for positive returns within this specific maturity window. The primary driver for these gains is identified as the 'carry,' which refers to the income generated from holding the asset relative to the cost of financing it. This perspective suggests that despite broader market volatility or shifting interest rate expectations, the yield provided by these bonds is sufficient to offset potential price fluctuations over the short term. For fixed-income traders, this indicates a preference for mid-duration assets over very short or very long-term bonds to capture steady income in the current cycle.

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