Reported 8 months ago
Market sentiment towards the Federal Reserve's (Fed) rate cut expectations cooled in the wake of the weekend of June 17, 2024, further supporting risk sentiment. According to Bank of America citing EPFR statistics, both investment-grade and non-investment-grade bonds maintained net inflows last week, although the momentum slowed compared to the previous week, with emerging market bonds seeing a net outflow. Overall, the bond market has seen 25 consecutive weeks of net buying, with a single-week net purchase of $10.29 billion, notably with US and European bonds leading the trend. The softer CPI data and ongoing robust employment have led some to expect two rate cuts by the Fed despite the slight uptick in US bond yields after the release of non-farm payrolls data. In the bond market, real estate mortgage-backed securities and municipal bonds have outperformed, while government bonds and inflation-linked bonds have shown weaker performance.
Source: YAHOO