CaixaBank Research Reports Subdued Investor Risk Appetite, Mixed Sovereign Bond Markets, and Softening ECB/Fed Tightening Expectations

CaixaBank Research's daily report for June 29, 2026, indicates subdued investor risk appetite. Sovereign bond markets were mixed, with Euro area yields broadly stable and interbank rates edging lower due to softer European Central Bank (ECB) tightening expectations following a decline in May's 1-year CPI expectations. In the U.S., Treasury yields declined across the curve, particularly at the front-end, consistent with diminishing expectations of Federal Reserve rate hikes. Equities weakened, led by the technology sector.