Market Comment | Caution prevailed as US-China trade talks stumble

Summary

This week financial markets continued to scale back expectations of a US-China phase-one trade deal. This, together with softer economic data, particularly from the US and EZ, extended investors’ appetite for safe-haven bonds.

Key points

• Key points:
• Core sovereign yields declined further this week with the US yield curve flattening.
• The US yield curve flattened.
• Minor changes in G-10 currencies, while EM currencies depreciated marginally.
• Equity markets declined moderately.

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