SINGAPORE (Aug 26): Haven assets reigned as traders returned to their desks Monday after an action-packed weekend that saw tensions between the US and China ratchet up again.

Treasury 10-year yields dropped below 1.5% to their lowest since Aug 2016, while the yen rallied as investors ramped up their bid for safety amid concerns that a bruising trade war will hamper global growth. The Turkish lira led a decline among emerging-market currencies.

With the trade rift growing, investors have lifted bets on three more rate cuts in 2019 by the Federal Reserve. Chairman Jerome Powell’s warning at Jackson Hole Friday that the US economy faces “significant risks” was quickly met with an exchange of more tariffs between the US and China.

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