In the US, the 10-year bond yield dropped to 3.9150%. The bond yield in the country tested its lowest level since October 2024.

The dilemma of inflation and recession persists worldwide.

Concerns are mounting over the retaliatory measures against China announced by US President Donald Trump on April 2nd, potentially leading to contraction in the global economy and increased inflationary pressures. Uncertainties remain about whether the trade disputes between the US and its major trading partners could trigger inflation in the country. This situation is also keeping alive concerns that the progress made by the US Federal Reserve (Fed) in combating inflation could be at risk. The heightened risk perception in the bond markets, along with a bullish bias, resulted in the US 10-year bond yield falling approximately 40 basis points during the last trading week, testing a low of 3.9150% since October 2024.