Market Comment | The global economic weakness persists

Summary

Sovereign bonds attracted fresh demand amid mounting trade deal uncertainty and concerns over the global economic outlook underpinned by disappointing Asian macroeconomic data.

Key points

• Key points:
• Optimism that the US will rollback tariffs on China’s goods faltered somewhat as negotiations continue to face new problems.
• The German economy unexpectedly avoided tipping into a technical recession, while China’s activity indicators disappointed.
• Sovereign bond yields extended yesterday’s decline, except for Italy whose risk premium widened significantly.

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