Last week was like few others in intensity, scope or impact. Global equities plunged in anticipation of a recession. The S&P 500 index fell through its June lows as it lost 4.6% during the week. Bond yields surged as investors realized that any improvement in inflation would be, at best, transitory. Yield on 10-year US Treasurys hit the highest level since 2011. Even more eye-catching, the yield on five-year UK gilts rose by over 50 basis points in a single day, going over the corresponding US yield yesterday for the first time in this cycle.
Markets: Reality Hurts!
Markets: Reality Hurts!
Markets: Reality Hurts!
Last week was like few others in intensity, scope or impact. Global equities plunged in anticipation of a recession. The S&P 500 index fell through its June lows as it lost 4.6% during the week. Bond yields surged as investors realized that any improvement in inflation would be, at best, transitory. Yield on 10-year US Treasurys hit the highest level since 2011. Even more eye-catching, the yield on five-year UK gilts rose by over 50 basis points in a single day, going over the corresponding US yield yesterday for the first time in this cycle.