Group 1 - The Swedish Nordea Bank suggests that the market's expectation of over 100 basis points rate cuts by the Federal Reserve by the end of 2026 may be overly aggressive, considering inflation risks [1] - The French bank Société Générale indicates that the yield spread between French and German 10-year bonds may stabilize around 80 basis points, but political risks could widen this spread if the French government collapses [1] - Citigroup believes that the U.S. government shutdown could mask real risks and delay market reactions, while the outlook for the euro against the dollar may improve significantly once French political turmoil subsides and U.S. interest rates face downward pressure [3] Group 2 - Bridgewater's founder Ray Dalio warns that the rising U.S. debt relative to income will severely squeeze government and other sectors' spending capabilities, posing a threat to the global monetary order [2] - Analysts from Pantheon Macroeconomics predict that Germany may have entered a technical recession due to trade uncertainties and declining industrial production, with preliminary GDP data expected by the end of the month [3] - Analysts from China International Capital Corporation (CICC) state that the Federal Reserve's resumption of rate cuts in September marks a new phase of dollar easing, prioritizing growth over inflation control due to rising employment risks [3]

Core Viewpoint - European bond yields experienced a decline on May 26, with notable decreases in France, Italy, Spain, and Greece, indicating a potential shift in investor sentiment towards safer assets [1] Group 1: France - The yield on French 10-year government bonds fell by 2.2 basis points to 3.240%, with a trading range of 3.296% to 3.235% during the day [1] Group 2: Italy - Italian 10-year government bond yields decreased by 2.9 basis points to 3.556%, with a trading range of 3.624% to 3.551% [1] Group 3: Spain - Spanish 10-year government bond yields dropped by 1.4 basis points to 3.179% [1] Group 4: Greece - Greek 10-year government bond yields fell by 2.2 basis points to 3.298% [1]