al corporate bond spreads narrowed over June. US economic data for May showed some improvement, helped by the easing of COVID-19 containment measures. However, certain US states began to reimpose restrictions towards the end of June in response to a rise in new infections. Survey data indicated the eurozone manufacturing sector had continued to contract in June, though at a more modest pace than in the prior month. The Fed forecast US interest rates would need to stay at near zero until the end of 2022 to bring unemployment back down to pre-coronavirus crisis levels. The ECB announced it would extend its quantitative easing programme, with the purchase of an additional €600bn in bonds. The BoJ ramped up its zero interest rate coronavirus lending scheme to help domestic companies.
*Source: Lipper to 30-Jun-20, total return. Indices rebased to zero at 29-May-20