Market Update
Developed sovereign yields traded a tad lower last week on rising political fears, the trade war row and weak macroeconomic data. The U.S. 10-year yield kicked off the week stable to higher, then it lost traction on weak PMI data and rising trade tensions. Throughout the middle of the week, the yield bounced back on trade war optimism, as China announced that the next round of negotiations should take place on the 10th of October. Afterwards, the 10-year yield lost traction on President Trump’s impeachment inquiry and on news that the U.S. is considering blocking all U.S. investments in China. The U.S, Germany and Japan’s 10-year yields closed the week lower by almost 4bps, at 1.68%, -0.58% and -0.24%, respectively.