US Stocks’ Peak-Rate Party Spoiled by a Lousy Treasury Sale

-- Just when it looked like stocks were making a bullish turn, a troubling Treasury auction slammed the brakes on the market’s momentum.The $20 billion 30-year Treasury auction went off at the highest rate since 2007 at 1 p.m. in New York Thursday. Within minutes the S&P 500 Index tumbled, falling as much as 1.2% before regaining its footing. The Cboe Volatility Index, also known as the VIX or Wall Street’s fear index, spiked above 17.

But sentiment reversed after the 30-year Treasury auction, which drew weak demand and weighed heavily on the broader market sentiment. Swap contracts linked to future interest-rate decisions pushed the odds of another quarter-point hike back to about 50%, up from about 30% as recently as Wednesday. Before sentiment turned, equity investors had already shrugged off a consumer price index report that topped expectations. Traders instead focused on the core annual inflation rate, which rose 4.1% in September, the slowest pace in two years.

The yield on 10-year Treasuries rose above 4.7% on Thursday, reversing a two-day decline. The tech-heavy Nasdaq 100 Index had the least bad session, falling 0.4%. Futures on the gauge as well as those on the S&P 500 were up 0.1% in early Asia trading on Friday.

Business Business Latest News, Business Business Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

US Stocks’ Peak-Rate Party Gets Spoiled by a Lousy Treasury SaleJust when it looked like stocks were making a bullish turn, a troubling Treasury auction slammed the brakes on the market’s momentum.
Source: BNNBloomberg - 🏆 83. / 50 Read more »

Asia Stocks Face Headwinds From Soaring US Yields: Markets WrapAsian stocks are poised to follow the US lower as Treasury yields soared after the latest inflation data bolstered bets on Federal Reserve rate hikes.
Source: BNNBloomberg - 🏆 83. / 50 Read more »

Stocks waver after wholesale inflation data surprises: Stock market news todayAfter the PPI update suggests inflationary pressures persist, the focus is on Federal Reserve minutes for insight into whether the era of hikes is over.
Source: YahooFinanceCA - 🏆 47. / 63 Read more »

Stocks waver after inflation data surprise, Fed minutes: Stock market news todayWall Street is looking ahead to consumer inflation data on Thursday for more insight into the Fed's next move.
Source: YahooFinanceCA - 🏆 47. / 63 Read more »

Stocks mixed as CPI inflation holds steady: Stock market news todayStocks were mixed on Thursday as investors digested a September inflation report that some economists believe will keep the Fed on hold in November but could...
Source: YahooFinanceCA - 🏆 47. / 63 Read more »

Stocks drop, bond yields rise as CPI inflation holds steady: Stock market news todayStocks were lower on Thursday as investors digested a September inflation report that some economists believe will keep the Fed on hold in November but could...
Source: YahooFinanceCA - 🏆 47. / 63 Read more »