Answering to myself: the taskset needs to be applied to all guest threads, not 
just the main process:ps -L -C kvm|awk '/kvm/ {print $2}'| xargs -n1 taskset -c 
-p 0-7

Thanks to Daniele for the info! The actual bug is because of certain AMD 
processors group cores in different NUMAs and  the calculation of cores changed 
in libvirt. Newer libvirt should have this fixed. More discussion about the 
issue can be found e.g. here: 
https://bugzilla.redhat.com/show_bug.cgi?id=833425                              
       

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