Concerns over the impact of the coronavirus dogged financial markets worldwide

The yield on the benchmark 10-year Treasury note is trading near its record low on Thursday as concerns over the impact of the coronavirus dogged financial markets around the globe. The 10-year Treasury yield fell three basis points to 1.28% after dropping to below 1.25% for the first time earlier in the session. The 30-year Treasury yield dipped two basis points to 1.77%. The benchmark 10-year rate has fallen 20 basis points since Monday is a reflection of global demand for the relative safety and positive yield U.S. debt offers. The move lower in yields also reflects traders’ expectations the Federal Reserve will step in at some point and cut rates. (CNBC)

China’s corporate debt binge is topping records even as the coronavirus outbreak freezes bond sales elsewhere in the world. Chinese firms ranging from property developers to financial companies have issued a record 51 billion dollar bonds so far this year, up over 30% from a previous peak recorded for the same period a year ago. The surge in issuance mirrors resilience across China’s financial markets, which are buoyant despite the near shutdown of the economy due to the virus. The CSI 300 Index of stocks has recouped its initial plunge spurred by the epidemic, while a gauge of small-cap equities is near its highest level since 2016. The yuan is approaching its strongest versus a basket of global peers since August. (Bloomberg)

Source: Danareksa Sekuritas Debt Research
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