The Morgan Stanley Capital International (MSCI) index for emerging markets lost over 16 per cent. The “flight to safety” led to a precipitous fall in developed bond market yields. In the space of a month, the two-year US Treasury yield dropped almost 70 basis points, below 4,00 per cent.
The EMBI plus spread above US Treasuries widened by 82 basis points to 250 basis points. Currency markets also experienced increased volatility. The USD appreciated from USD1,38 to USD1,34 against the euro, and appreciated against most major and emerging market currencies.