Looking back at asset performance in August, overall risk appetite was not bad, with the S&P 500 rising 2.7% and the Magnificent 7 rising 4.4%; however, among cross-asset rankings, precious metals performed stronger, with silver rising 15.6% and gold rising 9.7%, significantly outperforming major US stock indices. Meanwhile, the 30-year US Treasury yield rose to 5.31% mid-month, the highest since 2007.
From a fundamental perspective, long-term interest rates in August were initially driven by inflation and fiscal concerns, followed by the US Treasury announcing increased long-term Treasury repurchases, leading to a temporary decline in long-term yields; concerns surrounding "financial repression" also contributed to the rise in gold prices that month. Ultimately, the US 30-year yield fell by 3 basis points for the month, while the 2-year yield rose by 5 basis points.
