• Global bond yields continued to fall Thursday in Asia but rebounded in Europe amid continuing recession fears.
  • Stock markets held up despite the negative sentiment, with traders apparently boosted by trade-war negotiations between the US and China.
  • US, Japanese, and Australian yields plunged, prompting fears that central banks could look to ease monetary policy.

Global recession fears were unabated Thursday as credit markets in Asia signaled further dismay about slowing growth, with yields on US Treasurys slipping once again.

Yields on 10-year US Treasurys fell to 2.34%, a 15-month low, according to Reuters. Treasurys had since eased off to 2.37% as of 11:25 a.m. in London (7:25 a.m. ET).

“The rapid and persistent decline in bond yields is unnerving investors about the economic outlook,” said Jasper Lawler, the head of research at London Capital Group.

While the specter of yield-curve inversion – a key recessionary signal – remains prominent, developments in US-China trade-war talks appeared to steady stock markets. US officials have said China may make concessions on forced technology transfers in an attempt to get a deal over the line, according to Reuters.

Yields in Australia and Japan hit multiyear lows before easing off but not before sparking concerns that recession could be just around the corner.

Negotiations in Beijing are the latest development in an effort to reach an agreement that might ease tariffs on $250 billion worth of US and Chinese goods and boost cooperation between the two sides.

In China, stocks slipped once again, with the Shanghai Composite falling 0.9%. Japan's Nikkei closed down 1.4%.

In Europe, the FTSE 100 was up 0.7% early Thursday after yet another tumultuous evening in Parliament following a series of "indicative votes" on Brexit. The pound slipped against the dollar and was down 0.3% just outside the $1.30 range.

France's CAC and Germany's DAX were up 0.3%, while US futures were flat.