(Bloomberg) — Stocks fell and bonds retreated, tracking a drop in US Treasuries overnight after weak debt auctions and hawkish remarks from a Federal Reserve speaker.
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Europe’s Stoxx 600 slipped 0.3% at the open and futures pointed to a similar decline on Wall Street. UK 10-year yields added four basis points while those on similar-maturity German debt pulled back from a six-month high after regional inflation prints came in lower than the monthly estimate for the national figure.
Markets are feeling the ripples from a rough US session, after tepid demand for US note sales, resilient consumer confidence data and central bank talk fueled expectations interest rates will stay elevated. There’s an auction of seven-year Treasuries later Wednesday and an important US price growth print is in focus at the end of the week.
“The higher-for-longer bond yields risk is biting into equity valuations and short-term…
