Summary

US Treasury (UST) yield curve, along with other asset classes, experienced volatile swings in August. The Chinese central bank’s announcement that it would modify the approach to setting the CNY fixing midpoint effectively weakened the currency against the USD. This move prompted a risk aversion in markets but towards month end, further policy easing in China and US durable goods orders that printed markedly better than expected led to a rebound in risk assets and a move higher in yields.