Capital Market Expectations for Bonds

Amanda is a portfolio manager who is currently analyzing the economic indicators to formulate her capital market expectations for the upcoming year. She is particularly focused on understanding how inflation, interest rates, and economic growth rates impact asset returns. Amanda notes that if the central bank decides to increase interest rates to combat rising inflation, it could lead to lower bond prices and higher yields.

Given the economic context, which of the following expectations would Amanda likely anticipate regarding asset class returns over the next year?