Daily Market Commentary

June 29, 2020

Bonds
Yields cheaper by ~1bp in long-end tenors, steepening 5s30s by ~2bp, 2s10s by ~1bp; 10-year yields around 0.65%, cheaper by less than 1bp on the day while front end and belly are richer by less than 1bp; 5-year yield at ~0.30% is within 3bp of its May 8 record low.

Economy
Sentiment in a European Commission survey rose in June, though less than economists had forecast, and it remains well below the levels seen at the start of the year. The report -- like similar ones published recently -- indicates that full recovery is still a long way off.

Global
By the end of May this year, China had only bought about 19% of the total purchase target of more than $170 billion for goods in 2020. That means China needs to buy about $139 billion in the remainder of the year to meet the terms of the agreement signed with USA in January.

The information represented herein was obtained from various sources, which we believe to be reliable. Neither the information presented nor opinions expressed constitutes an offer to buy or sell any security. And it is not intended to guide the investor on which securities to buy, or when to buy or sell.

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