Global corporate bonds were little changed over October. Rising Covid-19 cases in the US and Europe together with evidence of slowing economic momentum generally weighed on market sentiment. Faltering negotiations between US lawmakers on a new fiscal stimulus package reinforced the market’s cautious tone. Democratic Party presidential contender Joe Biden continued to lead in opinion polls ahead of November’s elections. However, there was some concern that the final outcome could be delayed given the rise in mail ballots and the possibility of a contested result. The eurozone registered a second consecutive month of deflation, with a consumer price inflation reading of -0.3% in September. The European Central Bank signalled it was considering fresh monetary easing measures in response to the eurozone’s worsening economic outlook. Corporate bond issuance slowed versus the prior month.
*Source: Lipper to 30-Oct-20, total return. Indices rebased to zero at 30-Sep-20