ISM Services Index Falls To 51.4, Average Junk Bond Spread Falls To 5.2% and Japanese 10-Year Yields Climb Higher
- The Institute for Supply Management’s non-manufacturing services index fell sharply in August; although the sector growth has been going on for 79 straight months, August’s reading is the slowest growth in more than six years. CNBC
- So far in 2016, junk bonds have returned 12%, much higher than the S&P 500; however with this fall in yield the spread on these risky assets have shrunk 1.25% from their 10-year average of 6.45% above the risk free rate. The Wall Street Journal
- Japanese debt has seen its worst monthly performance in 6 years as investors shed their positions in the asset over fear that the BOJ will reduce debt purchases. Bloomberg