OTP Dollar Short Bond Fund

The fund provides a short-medium term investment opportunity in short term USD government securities and other fixed income assets with minimal risk. Monthly statement Macro Environment: June brought meaningful progress toward resolving the Iranian conflict. A ceasefire agreement was reached, restrictions on the Strait of Hormuz were lifted, and negotiations commenced regarding the suspension of Iran’s nuclear programme. Unlike previous episodes of geopolitical de- escalation, however, bond markets failed to stage a meaningful rally. Already at the beginning of the month, US labour market data surprised to the upside, while inflation concerns continued to intensify. May CPI rose by 0.5% month-on-month and 4.2% year-on-year, while core inflation stood at 2.9% on an annual basis. These developments reinforced the narrative of a potential resurgence in inflation, pushing fears of an economi