So we have less US inflation, but also robust growth figures and therefore no clear signal for a strong Fed rate cut in September. The implied probability of a 50 bps rate cut has fallen to 20% and the market is now pricing in 95 bps of US rate cuts by December, down from 121 bps last week.

While yields on safe haven government bonds rose slightly, risk premia in the credit markets continued to fall. The iTraxx Xover closed the week 30 bps tighter at 299 bps.