Current Trends in Bond Markets and Economic Outlook

This chapter analyzes the intricate dynamics of corporate bond markets, noting tightening credit spreads amid rising default rates, indicative of a heightened risk appetite among investors. It highlights the positive performance of emerging market currencies, while cautioning about vulnerabilities due to high leverage in the non-bank sector. Additionally, the chapter explores the implications of inflation expectations, monetary policy frameworks, and geopolitical events on market behavior and investor sentiment.