In August, UST rates sharply repriced due to weak U.S. economic data, leading to a temporary "growth scare" and widening EM credit spreads. As concerns eased, sentiment improved after Fed Chair Powell signalled a potential easing cycle. Geopolitical tensions escalated in the Middle East after Israel's assassination of a Hamas leader, prompting threats from Iran, while Israel launched new operations in the West Bank. In Asia, China's slower growth raised the need for more policy support, and protests in Indonesia opposed changes to election laws. Despite market volatility, EM credit spreads tightened by month’s end.