The start of a cycle

This week, the Bank of Canada and the ECB were the first of the G7 to initiate their rate cutting cycle, albeit with a cautious message (little indication from Christine Lagarde on the next steps). Bonds were supported mainly by the US news flow and signs of easing in the labor market, with a strong rally this week (-20bp on 10-year Treasuries below 4.30%). The news flow will remain busy in the short term: employment report this afternoon, US inflation figures for May next week, and the Fed and BoJ’s monetary policy meetings (our preview here ). But for the time being, nothing has dented the optimism of risky assets! Ahead of our mid-year outlook, we are collecting your views for the second half of the year in our Survey Strategy Outlook . Thank you in advance for your participation!