CNY

Investor demand for US assets continues to grow at an untrammelled pace this morning as signs of softness emerge in other areas of the global economy. Ten-year Treasury yields are down roughly six basis points to 4.26 percent, but benchmark rates are declining much more rapidly in the UK and euro area after a series of purchasing manager surveys pointed to wider weakness and diminished the case for further monetary tightening. The dollar is stronger against all of its major rivals – with the Japanese yen marking the lone exception. US equity futures are higher ahead of an earnings release...

Treasury markets are pausing for breath after a sell-off that drove yields to post-2007 highs, equity futures are seeing a modestly-stronger tech-powered open, and the dollar is slightly softer against its major counterparts. One-month implied volatility in the equity and currency markets remains depressed relative to history, even as the level of turbulence in Treasury markets hits elevated levels. This is reflective of the extent to which global rates are moving in sync with US yields, but also looks fragile as we move through the typical late-August lull and enter more strained global conditions in the early autumn. We rarely...