Market Comment | Risk-off mood weighed on sovereign bond yields

Summary

Market traded in a risk-off fashion on the back of rising worries about a deadly virus in China, amid the lack of relevant economic news. Consequently, equity markets slipped, especially Hong Kong’s Hang Seng index.

Key points

• Key points:
• Sovereign bond yields declined across the board amid virus outbreak in China.
• Equity markets fell, especially the Hong Kong’s Hang Seng index. Volatility index remained low (VIX 12).
• Positive Eurozone’s growth outlook and solid UK labor market data.
• The CNY depreciated although it was still trading below the CNYUSD 7 threshold, while the GBP outperformed its G10 pairs.

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