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Restive bonds showed signs of calm on Wednesday, but China's struggling economy and markets continue to unnerve world markets. A twin jolt from resurgent western debt yields and China's deepening economic funk and property sector troubles have made for a bumpy August to date. As 10-year Treasury yields hit their highest in almost 10 months on Tuesday, following a surprisingly racy U.S. retail sales readout for July, Wall St stocks swooned again - with the S&P500 recording only its third daily drop of more than 1% over the past three months.

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