Global Market Summary
Global bond yields were pushed higher once again this week, as U.S. inflation data continued to disappoint, raising doubt on the ability of the Federal Reserve to begin lowering interest rates over the coming months. European bond yields also moved higher in response to the U.S. inflation data, albeit at a much slower pace than seen in U.S. Treasuries. Meanwhile, in China, inflation data continued to surprise to the downside, highlighting the problems the Chinese economy faces with potential overcapacity and a lack of a strong demand stimulus. Spreads across major credit sectors generally tightened and total returns were broadly negative. The U.S. dollar advanced against the euro and the average spot currency performance in emerging markets was positive for the week.