President Trump shakes fixed income markets again. Interest rates rise amid intensifying political pressures on the Fed and renewed tariff threats. Tariff uncertainties weigh on Credit and Emerging Market Debt. Primary market demand remains buoyant but volatility looms for spreads and rates.

Buoyant primary market activity and flows continue to support credit and EM debt markets, while government bonds reverse course amid reassuring economic data as markets revised down central banks’ rate cut prospects.

US bonds had a strong month, with both interest rates and credit spreads lower, while European fixed income had to discount higher than expected German government bond issuances and the possible end of the ECB rate cut cycle.

Flash note

The US Federal Reserve held its target range for the Fed Funds rate unchanged yesterday, as widely expected, and the SNB -- one last cut, likely done in a highly uncertain environment.

Flash note

Flash note

Flash note

What is at stake, what to look for, and what are the implications?

The Fed acknowledges that fiscal dominance has arrived in the US