Stocks Fall as Weak Treasury Sale Lifts US Yields: Markets Wrap
- A $44 billion auction of seven-year notes sees tepid demand
- Fed’s Beige Book points to modest growth in US economy, prices
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A slide in bonds dragged down stocks as another weak sale of Treasuries raised concern that funding the US deficit will drive up yields at a time when the Federal Reserve is in no rush to cut rates.
The US sold $44 billion in seven-year notes at 4.650% — above the pre-auction level of 4.637%. That’s just a day after two other offerings totaling $139 billion saw lackluster demand. Those bond sales are exerting a growing sway over several asset classes, underscoring how the uncertainties over monetary policy continue to grip markets as inflation shows little signs of moderation.