Global rates surge and weigh on bond markets across the board.

Flash note UK: political risk and markets

Flash note

The US government shutdown is casting uncertainties on growth and US rates outlooks, weighing on bond market performances

A hawkish-sounding Powell drags government bonds and credit lower while elections drive EM debt higher

Government bonds delivered mixed performance last week while credit and EM debt rose

Government bonds rallied last week, credit markets shrugged off concerns around U.S. regional banks and EM markets rebounded

Credit markets experienced their sharpest weekly widening since early April last week while Government bond markets rallied

USD yields declined last week on fears of labor market weakening while credit and EM markets remained strong

EM Debt keeps rising while DM sovereign and corporate markets take a breather