Highlights:

• Easing US inflation and receding energy prices have extended  a synchronized rally of bonds and equities  that investors may  be tempted to chase.
• We see rising appeal in US bond markets as UST yields are likely past peak. Similarly, a decent carry renders  high  quality EA  Credit attractive,  with risks  of  stronger yield/spread increases muted.
• Yet  we are  prudent  on riskier buckets, including Equities and HY Credit. They are not priced for a recession, the strong determination of central banks to rein inflation in, nor China’s undecisive and Covid-frustrated effort to support growth.
   

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