U.S. equity benchmarks posted another week of losses, the move came to extend August declines, S&P 500 index is now down 4.8% on the month. We have seen similar performance across global equity markets, the Euro Stoxx Index is tracking a loss of 5.8% in August
The weakness seen in risk assets comes as yields extend moves higher, the U.S. 10-year yield is tracking a +40bps rise on the month, and it is now at 4.251%. The 30-year yield recently broke above its 2022 highs to reach the highest level since 2011, it is now at 4.372%
Since late last year, we have seen a negative relationship developing between risk assets and yield rates. Last week is evidence that the dynamic remains in place
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