Finance

The historic meltdown in the fixed-income market paused at the end of the week, offering much-needed relief to equity investors. The 10-year U.S. Treasury yield stabilized around 5.18% after climbing close to its highest level since 2007 earlier in the week. Yield pressures cooled down primarily because of dropping oil prices and data-dependent, measured commentary from Federal Reserve officials.

Digital assets put up a strong performance recently, bucking historical seasonal trends that typically make September a challenging month for the asset class. Bitcoin pushed past $85,000 to hit an eight-month high earlier in the month, holding onto its gains despite the Federal Reserve enacting its first interest rate hike in three years. The market remains supported by shifting macroeconomic variables, short-seller liquidations, and fading regulatory gridlock following the legislative failure of the CLARITY Act.

Precious metals experienced downward pressure as gold futures fluctuated within a narrow band near the $4,300 per troy ounce threshold. The non-yielding asset faced considerable headwinds as the U.S. dollar climbed to a two-month high and multi-decade highs in bond yields dented its appeal. Market participants continue to trim positions as the probability of another Federal Reserve interest rate hike next month hovers near 69%.