Global Market Summary
Global bond yields were largely unchanged this week. The U.S. posted a stronger-than-expected second quarter annualized GDP print of 2.8% (quarter-over-quarter), driven by strength in consumption, equipment investments, and inventories. In Europe, we saw a slowdown in business activity and confidence in both Germany and France, leading to overall lower Eurozone PMI prints. The most striking news out of Japan over the last week has been the tremendous rally in the yen as short positions in the popular funding currency have been unwound at a rapid pace. Spreads were mixed across major credit sectors, and total returns were also mixed. The U.S. dollar advanced against the euro and the average spot currency performance in emerging markets was negative for the week.
