New Delhi, Aug. 5 -- Global fixed income markets remained resilient in June despite expectations that interest rates could stay higher for longer, supported by strong investor demand, lower market volatility and healthy corporate fundamentals, according to a Morgan Stanley report.

The report said stronger economic data, persistent inflation and cautious messaging from central banks during June reinforced expectations that policy rates would remain restrictive for an extended period. Despite the challenging backdrop, fixed income markets absorbed record levels of bond issuance as investor demand remained robust.

"Overall, June reinforced the resilience of fixed income markets despite persistent inflation, higher-for-longer policy expecta...