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

Credit spreads tighten to new lows in the US, rates rise after the Fed

Credit and EM spreads continue to tighten. The USD yield curve “twisted” last week while the ECB meeting pushed EUR rates higher across all maturities.

US Treasury rates fell at the end of last week following the release of US employment data, as Fed’s rate cut expectations were revised.

The feud between President Trump and the Fed escalated further last week and France faces another episode of political instability. Long-term yields are rising on inflation and fiscal concerns, while credit and EM spreads widened.

Jerome Powell’s speech in Jackson Hole led to a sudden drop in USD yields that fueled positive performance for sovereign bonds, but also credit and EM markets that continue to attract substantial inflows

Interest rates rise on inflation and public debt level concerns, while demand remains firm for corporate credit and EM bonds