US Stocks’ Peak-Rate Party Spoiled by a Lousy Treasury Sale
- S&P 500 reversed earlier gains after a weak Treasury auction
- S&P had gained for four sessions, longest streak since August
The 30-year Treasury auction drew weak demand and weighed heavily on the broader market sentiment.
Photographer: Michael Nagle/BloombergThis article is for subscribers only.
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. And the selloff in the small-cap Russell 2000 Index accelerated, pushing it to it’s lowest close in months.