A sudden drop in risk appetite
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The eruption of US equity market volatility, with global spillover effects, is a delayed reaction to a rather significant increase in bond yields since the second part of August
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Market-implied inflation expectations didn't move that much so the rise in long term rates reflects an increase in real yields which in turn is related to strong growth numbers
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Historically the relationship between weekly changes in yields and stock market performance is weak
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This implies that one should focus on drivers of investor risk appetite and in particular signs of slower growth
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