An easing of US-China trade tensions in October triggered a risk-on phase in global financial markets.1 In September, risky asset prices across the globe stayed rangebound, supported by additional monetary accommodation in a context of subdued prospects for global activity. As sentiment shifted, stocks posted large gains in most markets but China, and credit spreads tightened. Term spreads in advanced economies (AEs) initially widened in line with the change in market sentiment. But their upward momentum petered out after a few weeks. Faced with persistently low inflation and a still tepid outlook for growth, central ... (full story)