Yuan Crashes Most In 25 Years As August Ends With Bonds & Bullion Bid

Well, that was quite a month...

High(Low)lights...

China's Renminbi suffered its biggest monthly loss since 1994
EM FX tumbled to a record low, the worst month in a year
US Treasury yields plunged in August by most since Sept 2011 (to record low yields at the long-end)
US Yield Curve flattened most in August since Jan 2016 (to its flattest since 2007)
Bund yields tumbled 26bps to record lows - the biggest monthly drop since June 2016 (Brexit vote)
Treasury 'VIX' spiked most in August since May 2009
Iron Ore Futures (Singapore) suffered their worst month ever...
Gold has the best August dollar gains since Feb 2016
Silver had the best August percentage gain since June 2016 (Brexit vote)

Stocks

US and Chinese stocks are surprisingly aligned YTD (both up around 16/17%) with Europe lagging (+13%)...

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Source: Bloomberg

But on the month, all major regions saw stocks lose a similar 1.5 to 2.0%...

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Source: Bloomberg

US equities ended the month lower with Trannies and Small Caps worst, Dow and S&P the least bad...

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Source: Bloomberg

Only The Dow Industrials and Transports are green from last week's Trump tantrum (S&P unch)...

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NOTE - last-minute panic-buying

Defensives dominated the month...

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Source: Bloomberg

The Dow managed to get back above its 100DMA but faded into it at the close today...

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Buybacks saved stocks numerous times this month...

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Source: Bloomberg

And while short-squeezes were used to keep stocks afloat, their surges were weaker and weaker...

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Source: Bloomberg

And... as @TaviCosta notes, another one bites the dust. This beauty was the #2 performer in the S&P 500 since March of ’09! Just broke down from multi-year support line as well.

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Source: Bloomberg

Bonds

Treasury yields utterly collapsed in August (30Y was down over 60bps at its lowest)... The biggest monthly drop in the long-bond's yields since Sept 2011

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Source: Bloomberg

30Y ended the week below 2.00% for the first time ever...

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Source: Bloomberg

A bloodbath for bond bears...

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Source: Bloomberg

And the yield curve collapsed (3m10Y) holding its inversion for

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Source: Bloomberg

And 2s10s closed the week inverted (biggest 2-month flattening since Jan 2015)...

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Source: Bloomberg

And before we leave bond land, we note that 30% of global IG corporate debt is now trading at a negative yield!!

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Source: Bloomberg

The Dollar rallied in August helped by Yuan weakness slightly offset by Yen strength...

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Source: Bloomberg

The broad trade-weighted dollar is at an all-time record high...

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Source: Bloomberg

EURUSD tumbled back below 1.10 for the first time since May 2017

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Source: Bloomberg

Emerging Market FX tumbled to record lows...

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Source: Bloomberg

Cryptos ended in the red for the month after yesterday's plunge (Litecoin the biggest loser)...

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Source: Bloomberg

With Bitcoin back below $10k...

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Source: Bloomberg

Commodities

Silver's best month since the Brexit vote (June 2016) and Gold rallied but crude and copper were clubbed like baby seals...

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Source: Bloomberg

Cotton fell for a fifth straight month in August, the worst such run in more than 14 years, as slowing demand feeds expectations for a global surplus.

Iron Ore Futures (Singapore) suffered their worst month ever...

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Source: Bloomberg

Silver led the precious metals but Platinum had a big month (up most since Jan 2017)

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Source: Bloomberg

Gold ended the week unchanged but well up from Trump's tantrum...

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But Silver dramatically outperformed (up for the 7th week of the last 8)...

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Source: Bloomberg

With Silver at its highest since April 2017

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Source: Bloomberg

Gold continues to track the surge in negative-yielding debt volumes almost perfectly...

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Source: Bloomberg

Finally, bonds and stocks had a very different month, you decide which you trust more...

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Source: Bloomberg

Will it be 1998 or 2013?

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Source: Bloomberg

While August saw a flood into safe-havens like bond and bullion, volatilities are notably divergent in Treasuries and Gold relative to other asset classes...

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