--- title: "The global bond market rebounded last week, with the U.S. Treasury yield curve flattening further compared to the previous week." type: "Topics" locale: "en" url: "https://longbridge.com/en/topics/40612013.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 fluctuations and other inherent factors of the Sub-Fund's assets. Therefore, you must bear the risk of not being able 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 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. It aims to generate a stable stream of income beyond capital appreciation for the Sub-Fund, thereby achieving long-term capital growth..." datetime: "2026-05-11T03:19:56.000Z" locales: - [en](https://longbridge.com/en/topics/40612013.md) - [zh-CN](https://longbridge.com/zh-CN/topics/40612013.md) - [zh-HK](https://longbridge.com/zh-HK/topics/40612013.md) author: "[易方达香港](https://longbridge.com/en/profiles/8787667.md)" --- # The global bond market rebounded last week, with the U.S. Treasury yield curve flattening further compared to the previous week. _Important Matters: 01) E Fund Unit Trust Fund - 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 USD, EUR, HKD, or offshore RMB with maturities not exceeding 3 years, including debt securities issued in emerging markets. It aims to generate a stable income stream beyond capital appreciation for the Sub-Fund 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 risk, 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 risk, d) emerging market risk, 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 risk, k) risk 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 risk, p) hedging/derivative instrument risk, q) currency risk, r) risk of paying distributions from capital and/or substantially from capital, and s) risks related to collateral and/or securitized products. 04) Unless the intermediary has explained to you, considering your financial situation, investment experience, and objectives, that this fund is suitable for you when selling the fund, you should not invest in the Sub-Fund. 05) Monthly dividend distributions will be made, subject to the fund manager's discretion. Distributions may be paid from capital 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 important changes occurred in the markets last week? Let's take a look together: Last week, the US core macro landscape featured a coexistence of employment resilience and manufacturing sector divergence, with the Federal Reserve's policy wait-and-see stance unchanged. **Regarding employment, non-farm payrolls added 115,000 in April, exceeding market expectations, and the unemployment rate remained at a low of 4.3%,** indicating ample labor market resilience. However, the labor force participation rate declined, and the employment structure showed divergence. The proportion of permanent unemployment decreased, and wage growth rebounded modestly year-on-year but had limited room for further increase, with residents' real purchasing power potentially eroded by inflation. **In manufacturing, the ISM Manufacturing PMI for April remained at an expansionary level of 52.7, unchanged from the previous reading, but the input price index hit a four-year high.** The employment index contracted for the 15th consecutive month. Coupled with supply chain disruptions from the Middle East conflict, manufacturers face dual pressures of high costs and shrinking employment, with expansion momentum falling short of expectations. Regarding Fed policy, influenced by Middle East uncertainty, inflation pressure, and the state of the job market, the thresholds for both rate cuts and hikes within the year have increased. **It is expected that the wait-and-see stance will be maintained in the near term, with subsequent attention needed on policy statements from Walsh after he assumes the role.** In China, the core macro focus is on foreign trade and consumption performance, overall showing a trend of strong foreign trade growth and rational consumption recovery. **In foreign trade, the total value of goods trade imports and exports in the first four months increased by 14.9% year-on-year, and imports and exports in April alone grew by 14.2% year-on-year.** Import growth continued to outpace exports, and the trade surplus expanded. Trade methods worked in synergy, with bonded logistics and processing trade showing significant growth. The diversification of trading partners continued to improve, with mechanical and electrical product exports leading. **Imports and exports by private, foreign-invested, and state-owned enterprises all achieved relatively rapid growth,** demonstrating supply chain resilience and the results of high-quality development. **In consumption, the number of domestic tourist trips during the "May Day" holiday increased by 3.6% year-on-year,** and total tourism spending grew by 2.9% year-on-year. However, per capita spending slightly decreased compared to the same period last year, reflecting more rational and cautious consumer spending. Coupled with March's total retail sales of consumer goods growth falling short of expectations, consumption recovery still requires sustained efforts. **In bond market performance, global bond markets recovered somewhat over the past week, with the global aggregate index rising 0.36% and the US aggregate index rising 0.26%.** US investment-grade corporate bonds rose 0.38%, and US high-yield corporate bonds rose 0.05%. The emerging market US dollar bond aggregate index rose 0.41%, and the Chinese US dollar credit bond index rose 0.22%. **Regarding interest rates, US Treasury yield movements flattened more than last week,** with the 2-year US Treasury yield rising 1bp to 3.88% and the 10-year US Treasury yield falling 2bp to 4.35%. The Net Asset Value per unit for the B Class Accumulating HKD Shares of the E Fund (Hong Kong) Short-Term Bond Fund is 114.024\*. In response to the recent bond market landscape, we will focus on high-quality bonds with relatively high coupons to build a solid 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 relatively significant.** Key economic data releases to focus on this week: Monday: China will release April CPI and PPI data. Tuesday: The US will release April CPI data. Wednesday: The US will release April PPI data. Thursday: The US will release April retail sales data. _\*Data sourced from E Fund Hong Kong's official website, as of 2026/5/11._ _Disclaimer: The issuer of this report is E Fund Management (Hong Kong) Co., Limited. This report does not constitute an invitation or recommendation to invest in fund units. Subscription for fund units must be made using the application form accompanied by 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 read the investment risks related to the fund contained 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 materials or the making of any invitation or recommendation is prohibited, or where the distribution of this report or the making of any invitation or recommendation to any person would be unlawful, this report does not constitute such distribution or invitation or recommendation. 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 official recommendation or endorsement of the scheme, nor is it a guarantee of the scheme's commercial merits or performance. It does not mean the scheme is suitable for all investors, nor does it endorse the scheme's suitability for any individual investor or any class of investors. Copyright © 2026. E Fund Management (Hong Kong) Co., Limited._ ### Related Stocks - [000008.CN](https://longbridge.com/en/quote/000008.CN.md) - [MOMO.US](https://longbridge.com/en/quote/MOMO.US.md)