Macro Strategy

The first chart in this report, U.S. 30 Yr. Yield, suggest to us that the long-term downtrend is well and strong. There are some early signs that the short-term downtrends for G4 government bond yields may change.  U.S. HY Spread widened a bit in last couple of weeks, but we feel that the risk of a spread spike remains low.  U.S. equity continues its rally, and EM equity seems like already peaked.  Commodities remain solid, while U.S. Dollar and Gold are in trading ranges.