Cbonds Weekly Report 02-12-2024

Last week, global bond markets stood firmly on positive ground. US yield curve values decreased considerably across all durations, following the announcement of Trump\'s Treasury secretary candidate and encouraging inflation data. As for Cbonds USD price indices, all regions performed positively, with the US at the top. Cbonds EM Corporate YTM Index decreased by 12 bp. After two weeks of high issuance activity, it has calmed down last week with the market gauging the yield\'s trajectory.

In emerging markets, several Chinese non-property sector firms were in the top gainers list, reflecting the gradual recovery of investors\' confidence towards the country. Nevertheless, the picture for the real estate developers is far less flattering as the real estate sales dropped again in November despite the package of stimulus measures unleashed by the Chinese government.

In developed markets, the main beneficiaries of the last week were concentrated in the US as the investors were increasing their exposure towards rallying debt securities of the US issuers. At a more particular level, the price of Aston Martin Capital Holdings\' bonds slid after the car maker announced the downward revision of its profit estimates. The revision comes shortly after the negative correction already issued in early October.

Bond market discussion this week featured several highlights. First were the Minutes of the latest Fed meeting, indicating gradualism in the approach towards future easing. Second was reshuffling in the risk premiums of the sovereign bonds in Europe: risk premiums for French securities inched higher than those of Greece. Finally, the battle between the Indian conglomerate Adani and the US judicial system is closely followed both in India and the international investors.