Global corporate bond yields were little changed over the month. Eurozone data pointed to weakness in manufacturing against the impact of continuing trade tensions and slowing global growth. However, monthly US economic data was largely robust, with a pick-up in US manufacturing output growth in June. As widely anticipated, the Fed cut interest rates by 0.25% to 2.25% following its July policy meeting. However, comments from Fed chair Jay Powell served to dampen expectations for further US rate cuts over the coming months and suggested the Fed would take a cautious approach. Comments from ECB president Mario Draghi further raised expectations that the ECB would unveil monetary easing measures following its September policy meeting. FedEx issued just over $2bn worth of bonds denominated in both US dollars and euros.
*Source: Lipper to 31-Jul-2019, total return. Indices rebased to zero at at 28-Jun-2019.