Equity markets had a mixed performance in July as the pace of newly reported COVID-19 cases rose in some parts of the globe. After a strong second quarter, local equity markets made losses for the first time in three months. Emerging markets outperformed their developed economies counterparts, with the MSCI emerging market gaining 9% in July. Bond markets continued to add to their gains for the year as both the British and global corporate bond indices ended the month up. GBP risk-free rates declined at all terms in July with the short- to medium-term rates seeing the largest fall. UK’s CPI inflation rose by 10 basis points in June with the headline figure at 0.6%. Realised volatilities declined in July with the FTSE 100 posting a realised volatility of 18.6% at year-end. Volatility risk premiums were broadly unchanged from the previous month as implied volatilities fell in coherence with realised volatilities.