• Union Bancaire Privee flagged AI-related costs as a new inflation driver as the energy shock faded, pushing developed market yields lower.
• May PCE inflation rose to 4.07% y/y, led by services; computer software and accessories accelerated to 14.5% y/y.
• UBP expects the Fed, ECB to hold rates, despite markets pricing a Fed hike by October.
• Global equities fell 2.1% as the AI rally paused; technology slid 5.3%, semiconductors dropped 6.5% on profit-taking.
• Brent fell 10% to about USD 72; 10-year Bund yields dropped 13 bps to 2.85%, 10-year Treasuries fell 8 bps to 4.37%.

Disclaimer: This news brief was created by Public Technologies (PUBT) using generative artificial intelligence. While PUBT strives to provide accurate and timely information, this AI-generated content is for informational purposes only and should not be interpreted as financial, investment, or legal advice. Union Bancaire Privee UBP SA published the original content used to generate this news brief on June 29, 2026, and is solely responsible for the information contained therein.