Low conviction but no pessimism

Another bumpy week on the rate markets, with news flow suggesting a further delay for the beginning of a much-anticipated pace of normalization of monetary policies, already slow compared to previous cycles. FOMC minutes published earlier can only confirm that this concern is broadly shared by central banks. So, investors adopt a wait-and-see but don’t look pessimistic, since volatilities remain low and demand for bonds (on both sovereign and credit risk) remains strong when investors are tapped for new issuance. The stock market consolidates after the recent rally and the dollar has been recovering .