Bonds suffer bruising September, but stocks remain resilient
TLT•Global bonds were set for their worst month in years as rising inflation, government finances and debt issuance pushed yields higher. Stocks were broadly resilient, while 10-year U.S. Treasury yields were near their highest level since 2007.
1. Bond yields climb
Global bonds edged up on Wednesday but were set for their worst month in years. The 10-year U.S. Treasury yield stood at 5.2363%, near its highest level since June 2007, and was on track to rise more than 47 basis points for the month. German and French 10-year yields were also set for monthly increases.
2. Stocks hold steady
Stocks remained broadly resilient despite higher borrowing costs, supported by earnings growth, economic strength and enthusiasm for artificial intelligence. The S&P 500 was broadly unchanged for the month and up 2.3% for the quarter, while Europe’s STOXX 600 was set for a monthly loss of around 2%.
3. Currencies and commodities
The dollar was on track for a monthly gain of almost 2% against a basket of currencies. Oil prices rose on Wednesday, with U.S. crude at $90.31 a barrel and Brent at $103.47, both set for monthly gains amid concerns about supply disruptions.
