Institution: Investors are unlikely to give up their expectations of a rate hike by the Fed in the second half of the year.

LBBW's Elmar Voelker stated in a report that, given the hawkish signals from the Federal Reserve, investors are unlikely to abandon their expectations for monetary tightening in the second half of the year quickly. The senior fixed income analyst said on the other hand, the temporary resolution of the Iran conflict has temporarily weakened the momentum of the tightening policy camp. He said, "If the easing of tensions in the Middle East continues, the likelihood of the Federal Reserve following the European Central Bank's pace and starting to raise key interest rates in the coming months will decrease." LBBW's central scenario remains that the US benchmark interest rate will remain unchanged over the next 12 months.