Core Insights - Global interest rates may soon test higher levels, as indicated by Dutch international rate strategists [1] - The Federal Reserve is expected to lower interest rates but may adopt a cautious stance regarding further cuts, which could exert some pressure on yields [1] - The bond market's volatility is likely to remain limited due to a lack of strong catalysts to drive yields significantly higher [1] Summary by Categories Interest Rate Outlook - The Federal Reserve is projected to maintain its median forecast, suggesting only one more rate cut by 2026 [1] Market Dynamics - The absence of strong catalysts is expected to keep bond market volatility in check, limiting significant increases in yields [1]

Group 1 - The core theme of the report is that three key factors will drive global bond yields in the second half of the year [1] - The first factor is the impact of significant global policy shifts, including increased tariffs and defense spending, on economic growth and inflation [1] - The second factor is the changing structure of global sovereign bond issuance, with a greater shift towards short-term bond issuance [1] - The third factor is the demand from global investors, with expectations of significant changes in global bond issuance by the second half of 2025 [1] - The report highlights that the market's heightened focus on de-dollarization may support higher financing needs outside the United States [1]