The danger of further interest rate hikes in both the US and the Euro-Zone seems unlikely at the moment. Important leading indicators (OECD) have clouded over recently, and macro economic data remains robust for the time being.

There has recently been strong demand for government bonds and corporate bonds with very good to good credit ratings. Yield levels have fallen sharply following the decline in expectations of interest rate hikes. 10-year German government bonds are only yielding less than 10 basis points.

Most emerging market bonds remain interesting, both hard currency bonds and local currency bonds. Momentum has improved for this segment, which has to do on the one hand with the easing of the political situation in some emerging markets, but also with the pricing of expected interest rate hikes in the USA.