Market Comment | The global economic weakness persists

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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