(Bloomberg) — 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.
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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.
At Nationwide, Mark Hackett says the events of the past week have been a “masterclass” in how emotions can dominate the movement in markets.
“Stocks remain vulnerable,” said Fawad Razaqzada at City Index and Forex.com. “More evidence of a bottom is needed to excite the…
