U.S. equity futures extended declines Wednesday, with the Dow slipping further into negative territory for the year, as a surge in Treasury bond yields continues to hammer global markets amid renewed inflation concerns.
A tight labor market, alongside a resilient domestic economy, has rekindled inflation concerns and lifted Treasury bond yields to the highest levels in more than sixteen years. Benchmark 10-year notes held at 4.812% in overnight trading, with 2-year paper pegged at 5.144%, while 30-year bonds crept towards the 5% mark, at 4.934%, a level that could trigger historic losses for fixed income portfolios and further selling on Wall Street.
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