S&P Global Ratings said global new bond issuance through July 2019 totaled $3.96 trillion, up 8.9% on the same stage of 2018.

“The increase is mostly attributable to the international public finance sector, whose midyear total is 63% higher than last year’s,” said S&P Global Ratings.

“Global nonfinancials saw a strong haul in July, coming in at a year-to-date total of $1.37 trillion, from $1.26 trillion last year.

“Issuance in U.S. public finance and global structured finance remained generally flat through July, while global financial services issuance is now up 2.3% for the year after a strong July total.”

S&P Global Ratings said global financing conditions generally have taken a positive turn thus far in 2019, on the back of softer stances by the US Federal Reserve and European Central Bank, supporting solid first-half bond issuance totals.

However, S&P Global Ratings said that easing monetary policies will have to battle slowing global economic growth expectations and likely financial market disruptions as the U.S.-China trade dispute winds on, which could moderate the growth rate for global bond issuance.

It said that in some asset classes, recent structural changes such as tax reform, regulatory changes, and alternate funding sources related to central bank stimulus are also moderating growth expectations.

“We expect global bond issuance to finish 2019 roughly 4% higher than the 2018 total,” said Nick Kraemer, head of S&P Global Ratings Performance Analytics.