AI Rally Meets Yield Pressure

Global markets ended Q2 2026 with an AI-driven equity rally tempered by rising US Treasury yields following strong JOLTS job data. Meanwhile, European inflation cooling cooled ECB hike expectations.

Key Takeaways

• 1.AI tech-linked equity strength led markets into quarter-end, while stronger US labor demand and JOLTS data pushed US Treasury yields higher.
• 2.Softer-than-expected inflation data across the Euro Area reduced the urgency for near-term ECB rate hikes.
• 3.The Japanese Yen continued to weaken, trading beyond 162 per dollar, prompting verbal intervention warnings from the Finance Minister.

Table of Contents

• Developed Markets
• Emerging Markets
• Central Bank Monitor
• Exhibit 1: G4 Rates Closes
• Exhibit 2: Macro Closes
• Exhibit 3: Inflation Closes
• Exhibit 4: G4 Central Banks
• Economic Releases
• The Day Ahead

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