Commodities Slump Bolsters Treasuries as Emerging Markets Roiled

A renewed slump in commodities damped inflation expectations and boosted demand for Treasuries, while China’s shock devaluation of its currency continued to unsettle emerging markets.

The Bloomberg Commodity Index sank to a 13-year low as declines in assets from copper to oil boosted the value of fixed-income assets. U.S. stocks churned higher, with equities returning to the middle of the range they’ve been stuck in since March amid mixed economic data and light trading volumes. Emerging-market currencies tumbled amid lingering concern over the impact of a Chinese slowdown on other developing economies.