– Global financial assets rallied across the board last week. Commodities were flat on a drop in oil prices.
– All sectors, styles and factors advanced. The most beaten up areas snapped back sharply.
– European stocks underperformed for the second week in a row, hindering relative gains on international indices.
– Treasury Bill yields climbed above 5.5%, the highest level since January 2001. Fed Funds are pricing in a 25bp increase for June.

– 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.

– While not severe, all major asset classes declined last week.
– Another advance by Large Growth stocks was insufficient to keep every other style and factor from dragging down cap-weighted indices.
– Latin America stood out, advancing 2.8% in a week when most equity markets declined.
– Spreads between different durations of short-term Treasury Bills have been volatile over the last six weeks as debt-ceiling talks continue.