Stocks Swoon After Weak $42 Billion Treasury Sale: Markets Wrap
- High-grade issuers offer $31.8 billion of bonds, most in 2024
- Yen slides after dovish BOJ signal tempers bets on rate hikes
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The rapid slide in US stocks that followed a weak $42 billion sale of Treasuries underscored the fragility of global financial markets in the wake of historic volatility.
After an equity surge driven by the Bank of Japan’s dovish signals, the S&P 500 wiped out its gains. Investors shunned the 10-year US bond auction, which drew a yield that was well above the pre-sale indicative level. The weaker-than-expected demand signaled the recent rally may have run its course. Treasuries also came under pressure as 17 blue-chip companies offered $31.8 billion of debt, the highest amount of US investment-grade issuance this year.