Bonds set for bruising September; stocks fare better
TLT•Global bonds were set for their worst month in years, with 10-year U.S. Treasury yields on track for their largest monthly rise in about two years. Stocks were comparatively resilient, while the dollar was headed for a 2% monthly gain.
1. Yields climb
Benchmark 10-year U.S. Treasury yields held near 5.2383%, their highest point since 2007, and were set to rise nearly 50 basis points for the month. The 2-year yield slipped to 4.8889% after New York Federal Reserve President John Williams pushed back against expectations for earlier policy tightening.
2. Stocks hold up
Stocks largely shrugged off higher borrowing costs. MSCI’s broad Asia-Pacific shares index excluding Japan rose 0.2% in early trading, while Nasdaq and S&P 500 futures edged higher. The article cited upbeat corporate earnings, global economic strength and enthusiasm around artificial intelligence as factors supporting equities.
3. Dollar advances
The dollar was on track for a 2% monthly gain, while the euro traded near a 16-month low of $1.1336. Brent crude rose to $103.16 a barrel and U.S. crude to $89.49, with both set for monthly gains on concerns about prolonged supply disruptions.
