sentix Survey Essentials (English)

Macro moves seen as less Bond-supportive

The latest Sentix survey underlines the ongoing improvement in sentiment towards equity markets (see Page 3), set against a less upbeat view on European bonds. While the past week has seen medium-term sentiment readings for Bunds tick a little higher, they remain well down from their May high-point, even as Bund prices have remained firm. This caution chimes with other readings that also indicate that survey participants view economic developments and inflation as having become less bond-supportive in the medium-term (Charts 2 and 3, page 2). Investors' caution on European Bonds may in part be reflecting changing opinion on the macro backdrop, and its implications for Bonds.