On 18 November 2015, Germany issued 2-year bonds at a record low of –38 basis points! The spread of the US 10-year yield over the equivalent maturity German bond is now trading around 175 basis points, close to its historic high of 190 basis points.
At the same time, China’s process of transitioning to a more domestic, consumption-driven economy from one that is investment-led and relies heavily on exports, was a major factor in slowing down its overall economic growth. We are all acutely aware that this slowdown adversely affected commodity prices and export-driven countries, which has severe repercussions for emerging-market economic growth, including on the African continent.