Global demand for fixed income securities fluctuated during the first half of the year. In the US, a hawkish Fed and stronger than expected economic data across the US accompanied by the China trade war has led to the shy demand for US safe haven instruments. As such, demand for short and long term US treasuries was frail during H1 2018, which led to the U.S. 10Y yield breaching 3%. Furthermore, the US Treasury Bond Index compiled by Bloomberg ended the first half of 2018 at 125.67 points, revealing a 1.05% drop compared to 127 points, end of 2017. Consequently, the yield on the US Treasury notes maturing in 5 years and 10 years rose from 2.20% and 2.40%, at the end of 2017, to 2.73% and 2.85%, at the end of June 2018.
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Eurobonds Market H1 2018