Stocks tumbled across the board last week after reports that an economic slowdown in the US was on the cards. In addition, the Federal Reserve auctioned off $24 billion of 10-year US Treasury notes, driving the yield to 2.73%, the lowest it has been since January 2009.
After a two-week wave of mediocre performance for recent issuance, some market participants fear that further bad news could slow down activity and lead to more days of flat trading.
Yet with Treasury yields at such lows, pricing remains a very attractive prospect for borrowers. And, thanks to plentiful liquidity, cheap money has continued to flow into Asia.