After April's weakness, May has been a positive month forequity investors. In contrast, at fixed income market, we have seen different behaviors. The yield on the US Treasury-10y has fallen to 4.5% from 4.7% while the Bund-10y has risen to 2.7% from 2.6%. Also remarkable, the fact that credit spreads remain close to historical minimums, both in IG and HY. Inflation continues to be one of the biggest focus of the market, and it remains above the 2% target, therefore central banks are keeping their monetary policy unchanged, especially in the United States where macroeconomic figures are solid. We continue with the same strategy of the last months; prioritizing having high-quality, non-cyclical stocks, combined with a portfolio ofshort-duration HY bonds, and slightly lengthening maturities in IG tranches.
