Macro Insights Weekly - Credit rally amidst monetary tightening

Global credit markets continue to rally, defying a repricing of the timing and depth of monetary easing. Short of an inflation rebound-driven selloff, the rally could have legs.
The rally is underpinned by still-ample liquidity in the financial system.
Spread compression notwithstanding, credit yields are attractive in absolute terms.
Constructive credit sentiment is also centred around expectations of forthcoming disinflation.
Beyond the US, Asian credit has gained in value in virtually all sectors.
China's growth supportive measures could keep the rally going.