– After outperforming for much of the last quarter, international equities slid behind US equities with a 1.9% decline last week.
– Evidence of a split market mounts. In an up market week, 9 of 11 sectors declined, 7 of 9 styles declined, and all but one factor fell.
– Developed Europe was a drag on foreign equities. Germany declined 2.5%.
– US Treasuries are set for a relief rally on the announcement of the US debt-ceiling deal.

– Global equities and commodities advanced, while Global Fixed Income suffered losses.
– Interest rate sensitive sectors struggled. Real Estate dropped 2.4%, and Utilities declined by more than 4%.
– Fed’s Bullard sees two more rate hikes needed in 2023, while Fed’s Kashkari says a rate hike in June is a close call.
– Yields on the 30Yr Treasury approached 4%, the highest level since March.