– 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.