Fixed-income markets followed suit with investment-grade bonds, as represented by the Barclay's U.S. Aggregate Bond Index, slipping 0.51%. Meanwhile, the Barclay's U.S. Corporate High-Yield Bond Index, a measure of the non-investment grade bond market, lost 0.61% in August.
The U.S. economy continued to show sputtering improvement in August, but concerns about the possibility of a U.S.-led military strike weighed on global stock markets and boosted the price of oil. Emerging-markets equities also continued to reflect investor unease surrounding both inflation and local loan markets. In fixed income, yields rose as redemptions continued due to speculation that the Federal Reserve would soon begin to unwind its bond-buying program.