Global Market Summary
Global bond yields drifted higher this week, fading the rally in rates following the benign May CPI data in the U.S. U.S. economic data releases did little to alter the outlook, with some softness in interest-rate sensitive housing data in May, but still-solid business sentiment readings for June. Comments from Fed officials highlighted the divergence in views among policymakers. U.S. Treasury 10-year yields moved 10 basis points higher during the week to 4.33%. In Europe, the focus is on the first round of the French parliamentary election this weekend. Current opinion polling suggests a poor outcome for President Emmanuel Macron’s centrist party, with the right-wing populist party leading in the polls. Spreads generally tightened across major credit sectors, and total returns were more mixed. The U.S. dollar advanced against the euro and the average spot currency performance in emerging markets was negative for the week.
