Treasury auctions are normally mundane affairs, but Wednesday's could make or break the stock market

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All this week the 10-year Treasury auction that will happen Wednesday day has been the main subject of conversation.

Stock traders don't normally talk about bond auctions, but all this week the 10-year Treasury auction that will happen on Wednesday has been the main subject of conversation.

If further stock rallies depend on rates, have they peaked? The 10-year Treasury has taken several runs at breaking out over 1.6% and failed. That is giving some investors hope that the runup is over. "What matters is the pace of increases rather than the actual yields," he told me. "We had a pretty rapid increase in yields at the end of February and early March, and that caused a lot of indigestion. When prices decline like they have, more demand steps in and slows the process.""A large part of U.S. Treasuries are owned by overseas entities, it's roughly 40% of all Treasuries outstanding," he told me.

 

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this is terrible news

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