Trade agreements

Anticipation of a prolonged U.S.-China conflict is mounting, and “it’s possible that a currency war will start as well,” an executive says.

Investors plowed into bullion-backed funds after the U.S. and China reached a truce in their trade war.

“Pretty much every central bank is now talking about global downside risks, and that’s helped bonds rally,” a portfolio manager says.

In the Treasury market, all eyes remain on the yield curve after three-year yields climbed above those of the five-year bonds.

One VanEck fund had $574 million of outflows, the most since June and almost 40% of its assets.

The iShares 20+ Year Treasury Bond ETF took in close to $2 billion in September, putting it on track for its second most monthly inflows ever.

There was some aggressive call options buying as sentiment pushed the country’s equities lower.

Even countries with solid prospects for growth and debt financing haven’t been immune to the selloff.