The Global Economy to Contract the Most since World War II

The global economy will contract the most since World War II this year and emerging nations’ output will shrink for the first time in at least six decades due to the Covid-19 pandemic, reducing incomes and sending millions of people into poverty, the World Bank said. Global gross domestic product will probably shrink 5.2% in 2020, the Washington-based development organization said in its semi-annual Global Economic Prospects report Monday. Emerging and developing economies will shrink 2.5%, their worst performance in data that starts in 1960, it said. (Bloomberg)

Treasury yields fell on Tuesday as the massive stock rally hit a pause. Investors also awaited the Federal Reserve’s monetary policy decision. The yield on the benchmark 10-year Treasury note dropped 7 basis points to 0.81% and the yield on the 30-year bond was down 9 basis points at 1.56%. (Bloomberg)

Source: Danareksa Sekuritas Debt Research

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