Market sentiment in focus

The next US Treasury auctions will provide an indication of how the market views the growing budget gap in the US budget. Of the major rating agencies, only Moody's has so far reacted to the US budget plans. At the moment, the market is confident due to the moderate tones in the tariff dispute and ongoing negotiations between the US and China on rare earths. EUR bonds appear to be benefiting from the uncertainties. With the primary market remaining strong, the trend towards narrower spreads continued across all segments.