Going into November 2023, 10-year US Treasury yield fell considerably (–29 bps compared to Oct 31) to 4.64% as at Nov 6. A cooling US job market gives the Federal Reserve room to keep interest rates on hold in December and support market views that the hike is likely coming to an end.
The yields of 10-year US Treasury continued to spike in October while Asiadollar Investment Grade spreads unchanged m-o-m: 10-year US Treasury yield breached 5% for the first time in October 2023 before falling back to 4.93% (+36 basis points m-o-m) as at Oct 31.
Meanwhile, Bloomberg Asia IG spreads remained unchanged m-o-m at 124 basis points. This was despite greater volatility in spreads this month, range-bound between 119 basis points (bps) and 129 bps, due to the heightened macroeconomic uncertainties and geopolitical concerns in the Middle East.
