Schroders global Fixed Income Director Julien Houdain said that the Iran conflict has entered its third week, and there are still various possibilities for the development of the situation, making it difficult to predict the economic and financial market outlook: If oil prices are higher than $120 per barrel or lower than $90, the global economy will look very different. The oil supply shock has prompted the bank to raise its risk probability assessment. Compared to February, the probabilities of both extreme scenarios have increased, while the probability of the economically stable scenario, originally considered a moderate dovish one, has been reduced accordingly. As expected, due to the inflationary pressures brought about by the oil price shock, the bank has raised the probability of an overheated economy scenario occurring; however, the bank's assessment of this remains lower than the probabilities implied by the market. Central banks around the world will closely monitor the possibility of second-round shocks, such as medium-term inflation expectations rising, wage increases, and disruptions in the supply chain. Considering market volatility and continued sensitivity to global energy prices, Schroders global maintains a neutral view on overall duration and tends to focus on cross-market bond investment opportunities. Canada is currently the bank's top choice for global duration (interest rate risk). The local economic backdrop - including a weakening labor market and slowing core inflation - does not seem to match the market's expectation of two rate hikes in 2026 already being priced into the Canadian bond market. In terms of asset allocation, the bank maintains patience.