--- title: "Global bond markets are continuing to decline overall, with the emerging markets US dollar bond composite index falling nearly 1%." type: "Topics" locale: "en" url: "https://longbridge.com/en/topics/39441373.md" description: "Important Matters: 01) E Fund Unit Trust - E Fund (Hong Kong) Short-Term Bond Fund (the “Sub-Fund”) is subject to general market volatility and other inherent factors of the Sub-Fund's assets. Therefore, you bear the risk of being unable to recover the principal invested in the Sub-Fund or potentially losing a significant portion or all of your investment. 02) The Sub-Fund primarily invests in a portfolio of debt securities denominated in US dollars, euros, Hong Kong dollars, or offshore renminbi with a maturity of no more than 3 years, including debt securities issued in emerging markets, aiming to generate a stable income stream for the Sub-Fund beyond capital appreciation..." datetime: "2026-03-23T07:26:55.000Z" locales: - [en](https://longbridge.com/en/topics/39441373.md) - [zh-CN](https://longbridge.com/zh-CN/topics/39441373.md) - [zh-HK](https://longbridge.com/zh-HK/topics/39441373.md) author: "[易方达香港](https://longbridge.com/en/profiles/8787667.md)" --- # Global bond markets are continuing to decline overall, with the emerging markets US dollar bond composite index falling nearly 1%. _Important Matters: 01) E Fund Unit Trust - E Fund (Hong Kong) Short-Term Bond Fund (the "Sub-Fund") is subject to general market fluctuations and other inherent factors of the Sub-Fund's assets. Therefore, you bear the risk of being unable to recover the principal invested in the Sub-Fund or potentially losing most or all of your investment. 02) The Sub-Fund primarily invests in a portfolio of debt securities denominated in USD, EUR, HKD, or offshore RMB with maturities not exceeding 3 years, including debt securities issued in emerging markets, aiming to generate a stable income stream for the Sub-Fund beyond capital appreciation to achieve long-term capital growth. There is no guarantee that the Sub-Fund will achieve its investment objective. 03) The Sub-Fund may bear a) investment risks, b) risks associated with investing in debt securities (including credit/counterparty risk, interest rate risk, sovereign debt risk, credit rating and credit rating downgrade risk, valuation risk, and risks related to below-investment-grade and/or unrated debt securities), c) "Dim Sum" bond risks, d) emerging market risks, e) risks related to sale and repurchase agreements, f) risks related to reverse repurchase agreements, g) concentration risk, h) RMB currency risk, RMB-denominated class risk, and hedged RMB class risk, i) risks related to perpetual bonds, j) convertible bond risks, k) risks of investing in other collective investment schemes/funds, l) risks associated with investing in debt instruments with loss-absorbing features, m) risks associated with contingent convertible bonds (including trigger level risk/conversion or full write-down risk, coupon cancellation risk, sector concentration risk, and being novel and untested), n) risks related to equity securities, o) Eurozone and European country risks, p) hedging/derivative instrument risks, q) currency risk, r) risk of paying distributions from and/or substantially from capital, and s) risks related to collateral and/or securitized products. 04) Unless the intermediary has explained to you, after considering your financial situation, investment experience, and objectives, that this fund is suitable for you, you should not invest in the Sub-Fund. 05) Dividends will be distributed monthly, subject to the fund manager's discretion. Distributions may be paid from or substantially from capital, which will immediately reduce the Sub-Fund's net asset value. The fund's distribution rate does not represent the fund's return rate; a positive distribution rate does not mean the fund's return is positive; past distribution rates do not indicate future distribution rates. 06) Investors should not make investment decisions based solely on the information provided in this document and should read the details and risk factors contained in the relevant fund's offering documents._ Hello, fellow investors. What significant changes occurred in the market last week? Let's take a look together: Last week, the US core focus was on the Federal Reserve's March FOMC meeting, while also paying attention to inflation and economic forecast adjustments, as well as the question of Powell's tenure. The Fed announced it would maintain the target range for the federal funds rate at 3.5%-3.75%, marking the second consecutive pause this year. Among the 12 FOMC members, 11 supported this decision, with only one advocating for a 25 basis point rate cut. **The member who previously opposed pausing rate cuts has now shifted to supporting the hold.** The meeting emphasized the uncertainty of the impact from Middle East geopolitical conflicts, **and the transmission of high oil prices to inflation requires ongoing observation.** At the same time, the 2026 PCE inflation forecast was raised to 2.7%, the GDP growth forecast was slightly increased to 2.4%, and the unemployment rate forecast was maintained at 4.4%. **The dot plot shows officials' divergence converging towards fewer rate cuts this year, with the median projecting one cut for the year,** leading to a pullback in market rate cut expectations. Additionally, Powell clearly stated he has no intention of leaving the Fed Board before the investigation is complete. If the nomination for a new chair is not confirmed in time, he will serve as acting chair. His personal policy guidance influence has somewhat diminished. **Last week, China released its January-February national economic data, showing a strong start overall with a steady and improving trend.** On the consumption front, total retail sales of consumer goods grew by 2.8% year-on-year, with strong support from online consumption. Catering consumption growth rebounded, and discretionary consumption continued its recovery. However, automobile-related consumption saw a significant decline. Excluding automobiles and petroleum products, core retail sales growth reached 8.9%. In industry, value-added output of industrial enterprises above designated size grew by 6.3% year-on-year, with private enterprises leading the growth. **High-end manufacturing sectors such as computers, communications, railway, shipbuilding, and aerospace showed outstanding growth rates. Energy production remained stable,** with crude oil production shifting from decline to growth, and power production growth accelerating. Regarding investment, national fixed-asset investment grew by 1.8% year-on-year, infrastructure investment growth reached 11.4%, and industrial investment grew by 5.4%. However, private investment declined year-on-year. Real estate development investment saw a narrowing decline, but sales and new construction starts still showed a downward trend. **On the employment front, the average surveyed urban unemployment rate for January-February was 5.3%, unchanged from the same period last year.** The youth unemployment rate (aged 16-24) has declined for six consecutive months, indicating overall stable employment. In bond market performance, **global bond markets continued to decline overall over the past week.** The global aggregate index fell by 0.14%, the US aggregate index fell by 0.51%, US investment-grade corporate bonds fell by 0.27%, and US high-yield corporate bonds fell by 0.31%. The emerging market USD bond aggregate index fell by 0.99%, **and the Chinese USD credit bond index fell by 0.39%. In terms of interest rates, US Treasury yields rose overall,** with the 2-year yield rising 18bp to 3.90% and the 10-year yield rising 10bp to 4.38%. The net asset value of the E Fund (Hong Kong) Short-Term Bond Fund Class B Accumulating HKD Shares is 113.264\*. In response to the recent bond market landscape, we will focus on high-quality bonds with relatively higher coupons to solidify the foundation for stable returns. At the same time, we will continue to seize opportunities for tactical trading, striving to further enhance overall return levels. **Short-term bond funds have lower sensitivity to interest rate fluctuations, making their allocation advantages more pronounced.** Key economic data releases to focus on this week: Tuesday: The US will release the preliminary March S&P Global Manufacturing PMI. Friday: The US will release the March University of Michigan Consumer Sentiment data. _\* Data sourced from E Fund Hong Kong's official website, as of 2026/3/23._ _Disclaimer: The issuer of this report is E Fund Management (Hong Kong) Co., Ltd. This report does not constitute an invitation or recommendation to invest in fund units. Subscription for fund units can only be made using the application form attached to the fund prospectus. Investments involve risks. Fund prices may rise or fall, and past performance is not indicative of future results. Before investing, investors should carefully read the investment risks related to the fund in the fund prospectus (including the "Risk Factors" section). This report may only be distributed in certain jurisdictions. In any jurisdiction where the distribution of such information or the making of any invitation or suggestion is not permitted, or where the distribution of this report or the making of any invitation or suggestion to any person would be unlawful, this report does not constitute such distribution, invitation, or suggestion. This document is exempt from pre-vetting and authorization by the Hong Kong Securities and Futures Commission and has not been reviewed by the SFC. SFC authorization does not imply a recommendation or endorsement of the scheme, nor does it guarantee the commercial merits or performance of the scheme. It also does not mean the scheme is suitable for all investors, or that the scheme is suitable for any individual investor or any class of investors. Copyright © 2026. E Fund Management (Hong Kong) Co., Ltd._