PGIM
Report published June 2, 2026
Weekly View From the Desk: PGIM Market Outlook (June 2, 2026)
PGIM · June 2, 2026
The report analyzes key questions for H2 2026, focusing on potential geopolitical resolutions in Iran, US Fed rate cuts, and central bank divergence in Europe and Japan.
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Finvaulta summarizes PGIM's analysis. Attribute opinions, forecasts, time-sensitive values, and chronology to the issuer and report date; do not treat this page as an independent verification or a current market-data source.
Key Takeaways
- 1.An eventual deal with Iran regarding sanctions relief and uranium stockpiles is a key focus, with Brent crude expected to range between $80-$100.
- 2.The base case for the U.S. economy includes three 25 bp Fed rate cuts over the next 12 months, contingent on falling inflation and labor market slack.
- 3.Unlike the Fed, the ECB and Bank of Japan are expected to hike rates in the near term to address precautionary inflation concerns and currency weakness.
Table of Contents
- MACRO
- DEVELOPED MARKET RATES
- IG CORPORATES
- LEVERAGED FINANCE
- EMERGING MARKETS
- SECURITIZED PRODUCTS
- MUNICIPALS
- THE RETURNS TABLE AS OF MAY 29, 2026
Report data
THE RETURNS TABLE AS OF MAY 29, 2026
| Metric | Estimate | Context |
|---|---|---|
| Brent Crude Price Range | 80-100 USD per barrel | Base case expectation if a phased agreement with Iran is reached. |
| Fed Funds Target Rate Cuts | 3 cuts of 25 bp | Conditioned on inflation reaching 3% or less. |
| May IG Issuance | 170 billion USD | U.S. IG corporate bond supply. |
| Muni Weekly Inflows | 2.3 billion USD | Second-highest week ever of muni inflows. |
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