According to Jinshi, Kevin Thozet, a member of Carmignac's investment committee, said in a report that the European credit market background is favorable and that the European Central Bank is expected to cut interest rates for the first time in June and further after September. He believes that the resilience of the economy will keep the default rate within a controllable range, while the decline in inflation will allow interest rates to be lowered. Carmignac is optimistic about short- to medium-term bonds. Thozet further stated that lower policy rates will be equivalent to reflation, so long-term bond yields will also rise as the yield curve steepens to reflect better growth prospects.
