Recent synchronised movements in US assets have received considerable attention. While US Treasuries typically act as a hedge against weak equity markets, we observed a positive correlation during the month, with Treasuries declining alongside stocks and the dollar.
The weakness across US-related assets has raised questions about whether Treasuries and the dollar are losing their safe-haven status, as investors seek alternatives amidst policy uncertainty.
For further insights on these uncertainties, do listen to the latest episode of the "Outlook in Five" podcast, featuring our Head of Fixed Income Research, Boh Hui Ling.