On March 28, Schroders Global Investment published an article stating that in terms of short-term fixed income products, it typically refers to short-term bonds with maturities of three to five years. Due to the lower sensitivity of these bonds to interest rate changes, their volatility is often lower than that of long-term bonds. For investors considering reducing cash holdings, this is an attractive option, but it is not the only reason for investing in short-term fixed income. Schroders Global Investment pointed out that in recent years, the bond investment environment has been challenging, with volatile financial markets keeping bond investors up at night, and rapid interest rate hikes by central banks causing bond prices to plummet, but also creating unique investment opportunities. Currently, fixed income investors are benefiting from significantly higher yields. For example, the Bloomberg Euro Aggregate 1-3 Year Index currently has a yield higher than the median yield for 10-year and 20-year bonds. Yield declines (yields and prices move in opposite directions) can boost bond returns. Schroders Global Investment's unconstrained global fixed income team's baseline forecast is for an economic "soft landing," where central banks successfully curb inflation without harming the economy. Falling interest rates generally benefit government and corporate bonds, while companies also demonstrate strength. As inflation pressures further ease, financial markets expect the European Central Bank (ECB) and other central banks to start lowering interest rates in the coming months. In general, rate cuts lead to higher bond prices, and with increasing demand for existing bonds in financial markets, higher fixed coupon rates will lead to higher bond prices. Rate cuts also benefit the business environment, as lower borrowing costs make it easier for companies to pay interest to bondholders. Additionally, since deposit rates are closely related to monetary policy, attractive deposit rates may not be sustainable over the past year. In fact, actual deposit rates are often lower than the level of interest rates predicted by central banks. Data from the European Central Bank shows that the average deposit rate (available for early redemption) is only 1.7%. Therefore, by investing in short-term fixed income, investors can lock in higher yields for a relatively longer period of time.