The repricing of tapering expectations continued in the first week of July, bolstered by the French auction, broken technical resistance, and by strong European economic prints. It pushed yields further up and saw the Lyxor Hedge Fund Index nearly flat at -0.1% from 27 June to 04 July (-0.1% YTD).

Jean-Baptiste Berthon, Senior Strategist at Lyxor Asset Managem