Market Comment | ECB and Fed’s shift towards policy easing spurs global bond rally

Summary

Three major markets driver this week were the increasing expectations for monetary policy easing (Fed and ECB), the hopes of a resumption in stalled US-China trade talks and the increasing US-Iran geopolitical tension.

Key points

• Key points:
• US-Iran military confrontation sends oil sharply higher
• Sovereign bond yields fell further across the board and yield curves flattened further
• US economic data disappointed while European economic data was mixed
• EU leaders failed to agree on next EC president

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