Fixed Income Weekly

Fixed income markets saw positive performance in May as falling oil prices reduced inflation concerns. Investors are now focused on upcoming June central bank meetings and Colombian election outcomes.

Key Takeaways

• 1.May performance was positive for fixed income as lower oil prices eased inflation fears and resilient growth compressed credit spreads.
• 2.Central bank focus shifted to persistent inflation; markets are pricing a 25bp hike from the ECB in June and a significant probability of a Fed hike by year-end.
• 3.Hyperscaler debt (driven by AI demand) is becoming a major force in the IG market, representing 8% of bonds with maturities over 15 years.

Table of Contents

• Fixed Income Weekly
• The Chart of the Week
• What happened in the last ten days?
• Central banks
• Rates
• Credit
• Emerging market
• Our view on fixed income
• High Yield
• Investment Grade
• EM
• Disclaimer

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