The data still tells us that the US economy is strong and that Europe is on a firming trend. Yet sentiment has collapsed. We hear talk of global recession and rising defaults. The bond market is seeing wider bid-offer spreads and poor liquidity.
Early in the year, the bull market in global bond markets was unstoppable, as oil fell and central banks cut policy rates or added to unconventional easing. But, in Q2, sharp sell-offs reversed many of those gains.