Mark Dowding, head of fixed income at RBC BlueBay Asset Management, said the
firm continues to favor inflation-linked bonds and inflation swaps while
prospects for a Middle East peace deal remain unclear. LSEG data show money
markets have fully priced a 25bp Fed hike in December. Dowding said hopes for a
peace agreement are fading, leaving the region in a prolonged "gray zone", and
that trade through the Strait of Hormuz remains only a small fraction of pre-war
levels.
