The upward trend in developed sovereign yields continued during last week on less severe outcomes from the U.S.-China trade spat, persistent strong oil prices, and supportive macroeconomic data, however, gains were capped due to rising political fears in EU. The U.S. 10 year yield started the week stable in anticipation of the new tariffs that the U.S. will impose on China. Afterwards, the 10 year yield jumped higher and kept its gains throughout the week on receding fears regarding the trade war between the U.S. and China. Germany’s 10 year yield mimicked the U.S. 10 year yield moves during last week, and at one point, it breached the 0.50% threshold, however, Germany’s 10 year yield lost traction on failed Brexit talks as well as rising noises about Italy’s budget. Japan’s 10 year yield remained stable during last week, but interestingly, the 20 year yield jumped to the highest level since April 2017 as the BOJ trimmed its buying of bonds due in more than 25 years, marking the first reduction in the segment since July of this year. Nevertheless, both the U.S. and Germany’s 10 year yields closed the week higher by 7bps and 2bps, at 2.06% and 0.46%, respectively.