 Global markets were boosted strongly last week as there seemed to be resolution to two major risks finally. UK and Ireland appeared to have found the "pathway" to avoid no-deal Brexit. Meanwhile, US and China agreed an interim trade deal that would avert further tariffs escalation. The improvement in sentiments was best reflected in the bond markets. German 10-year yield closed at -0.439, up from prior week's -0.586, just inch below September's high of -0.432. Japan 10-year JGB yield closed at -0.179, up from prior week's -0.211. US 10-year yield also rose to 2.215, up from prior week's 2.015. In the currency markets, Sterling was overwhelmingly the strongest one on Brexit optimism. Canadian Dollar was the second strongest, lifted by strong employment data. Euro was the third strongest. On the other hand, Yen and Swiss Franc were the weakest, naturally on strong risk appetite and rebound in treasury yields. Dollar also suffered some selloff and ended as the third weakest. |
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