Bullish sentiment in fixed income, mixed views on equities

The Marquis Quick poll highlights that institutional investors remain bullish on the fixed income complex, despite a big move in duration and long-term rates. However, there is disagreement on the direction of equities, with sentiment heavily influenced by the outlook for the US economy and equity valuations. Some believe in a cycle extension with a soft landing, while others predict a potential soft patch and more aggressive rate cuts by the Fed. The recent CPI numbers provided mixed evidence for these views, with inflation data being firmer than expected, but key categories suggesting a potential abatement of inflation.