Global Market Summary
Global bond yields declined this week, as major central banks initiated their easing cycles, and softer U.S. data releases suggested that the U.S. Federal Reserve (Fed) may also be able to ease towards the end of the year. The Bank of Canada became the first G7 country to cut interest rates this week, lowering its benchmark overnight rate by 25 basis points (bps) to 4.75%. The European Central Bank (ECB) also commenced its rate cutting cycle, lowering its main refinancing rate by 25 bps to 4.25%, the first cut since 2016. Spreads generally widened across major credit sectors, and total returns were broadly positive. The U.S. dollar retreated against the euro and the average spot currency performance in emerging markets was negative for the week.