Bonds Catch a Bid While Stocks See Late-Day Rally: Markets Wrap
- American manufacturing growth weakens to two-year low
- Both equities and bonds were rocked by outflows this week
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Treasuries surged after an ugly first half as weak economic data added to recession fears. A late-day rebound in stocks was exacerbated by low volume ahead of Monday’s US holiday.
Bond yields sank, with the five-year rate at one stage plunging more than a quarter of a percentage point. Traders are paying the most since March to hedge against a deeper slide in 10-year US yields. All major groups in the S&P 500 rose, while the tech-heavy Nasdaq 100 underperformed.